NZD/USD Price Analysis: Prints cup-and-handle bullish formation around 0.7100
- NZD/USD grinds higher following the pullback from weekly top.
- Firmer RSI, sustained trading beyond 200-HMA favor bulls.
- May’s top lures buyers during further upside, weekly low adds to the downside filters.
NZD/USD consolidates the heaviest daily gain in a week around 0.7195, down 0.11% intraday as European traders brace for Friday’s bell.
The kiwi pair poked the monthly high before easing from 0.7218 the previous day. In doing so, the quote portrays a cup-and-handle bullish chart pattern on the hourly play.
The buyer’s optimism could also be witnessed through the pair’s successful trading above 200-HMA amid a firmer RSI line.
However, a clear break of 0.7210, followed by the clearance to 0.7220, becomes necessary for the confirmation of an upside targeting May’s peak of 0.7317.
Meanwhile, pullback moves remain less worrisome until staying beyond the 200-HMA level of 0.7165. Also acting as immediate support is the area comprising multiple levels marked since October 22, around 0.7130.
To sum up, NZD/USD upside momentum is gradually catching heat but needs a trigger for fire.
becomes necessary for the pair
NZD/USD: Hourly chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
