- NZD/USD fades upside momentum inside one-week-old trading range.
- RBNZ announced 75 bps rate hike, Governor Orr expects shallow recession.
- Bulls remain hopeful as convergence of the six-week-old ascending trend line, 200-EMA appears a tough nut to crack for sellers.
- Late August high could lure buyers past 0.6206.
NZD/USD retreats from intraday high surrounding 0.6200 to 0.6166 during early Wednesday as bulls run out of steam on the latest commentary from Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr.
Also read: RBNZ’s Orr: It will be a brief recession
Even so, the Kiwi pair remains inside an eight-day-long symmetrical formation and keeps the buyers hopeful.
Also suggesting the NZD/USD pair’s further upside are the bullish signals from the Moving Average Convergence and Divergence (MACD) indicator, as well as the steady Relative Strength Index (RSI) placed at 14.
That said, the 50-EMA level surrounding 0.6100 offers immediate support to the quote ahead of the aforementioned trading range’s bottom, near 0.6060.
Following that, the 200-EMA and an upward-sloping trend line from October 10, close to 0.5945, becomes crucial for NZD/USD sellers to retake control.
Alternatively, an upside clearance of 0.6206 could direct the pair buyers toward the late August high surrounding 0.6255.
However, the NZD/USD pair’s successful run-up beyond 0.6255 will enable the bulls to aim for the August month’s peak near 0.6470.
NZD/USD: Four-hour chart
Trend: Further upside expected
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