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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	0.7194
Today Daily Change	-0.0008
Today Daily Change %	-0.11%
Today daily open	0.7202

Trends
Daily SMA20	0.7052
Daily SMA50	0.7038
Daily SMA100	0.7019
Daily SMA200	0.7101

Levels
Previous Daily High	0.7218
Previous Daily Low	0.7152
Previous Weekly High	0.7219
Previous Weekly Low	0.7049
Previous Monthly High	0.7171
Previous Monthly Low	0.6859
Daily Fibonacci 38.2%	0.7193
Daily Fibonacci 61.8%	0.7177
Daily Pivot Point S1	0.7163
Daily Pivot Point S2	0.7124
Daily Pivot Point S3	0.7097
Daily Pivot Point R1	0.7229
Daily Pivot Point R2	0.7257
Daily Pivot Point R3	0.7296

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.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD falls toward 1.1700 on broad USD recovery

EUR/USD turns south and declines toward 1.1700 on Wednesday. The US Dollar gathers recovery momentum and forces the pair to stay on the back foor, as traders look to USD short-covering ahead of US inflation report on Thursday. However, the downside could be capped by hawkish ECB expectations.

GBP/USD trades deep in red below 1.3350 after soft UK inflation data

GBP/USD stays under strong selling pressure midweek and trades below 1.3350. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board ahead of Thurday's BoE policy announcements.

Gold clings to moderate daily gains above $4,300

Following Tuesday's volatile action, Gold regains its traction on Wednesday and trades in positive territory above $4,300. While the buildup in the USD recovery momentum caps XAU/USD's upside, the cautious market stance helps the pair hold its ground.