NZD/USD Price Analysis: Pullback from 21-EMA probes bullish channel formation, 0.6090 eyed
- NZD/USD remains mildly bid inside one-week-old ascending trend channel.
- Convergence of 50-EMA, channel’s support questions immediate downside.
- Lower high formation, bearish MACD signals keep sellers hopeful.
NZD/USD retreats from intraday high to 0.6115 heading into Tuesday’s European session. In doing so, the Kiwi pair reverses from the 21-bar Exponential Moving Average (EMA).
It’s worth noting that the lower high formation since Friday and bearish MACD signals join the quote’s U-turn from the short-term key EMA to tease bears.
However, a convergence of the 50-EMA and support line of a one-week-old ascending trend channel, around 0.6090, appears a tough nut to crack for the NZD/USD bears.
In a case where NZD/USD bears manage to conquer the 0.6090 support confluence, the 100-EMA and an upward-sloping trend line from November 03, close to 0.6010, as well as the 0.6000 psychological magnet will challenge the pair’s further downside.
Alternatively, a clear upside break of the 21-EMA surrounding 0.6125 could escalate the recovery moves towards the 0.6175 hurdle before challenging the upper line of the mentioned channel, close to 0.6210 by the press time.
Should NZD/USD buyers manage to keep the reins past 0.6210, the late August swing high surrounding 0.6255 could act as the last defense of the bears.
Overall, NZD/USD bulls appear running out of steam but the road to the downside is a long one.
NZD/USD: Four-hour chart
Trend: Further downside 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.
