NZD/USD Price Analysis: Recovery from five-week troughs falters near 0.6950
- NZD/USD’s rebound remains capped by the ascending triangle hurdle.
- RSI stays above the midline, keeping NZD buyers hopeful.
- All eyes are on RBNZ for the next direction in the kiwi.
NZD/USD has turned south after meeting stiff resistance near the 0.6950 region once again.
In doing so, the spot has erased early gains and now drops 0.16% on the day to trade at 0.6931. The kiwi got sold-off into a fresh risk-aversion wave that emerged on the renewed China Evergrande fears.
Looking ahead, all eyes remain on the US Nonfarm payrolls and the RBNZ monetary policy decision for fresh trading impetus in the spot this week.
From a short-term technical perspective, the currency pair is challenging the four-day-old ascending triangle hurdle at 0.6950 on the four-hourly chart, as the recovery from five-week lows of 0.6859 falters.
A four-hour candlestick closing above the latter is needed to confirm a triangle breakout, which would open doors towards 0.7000.
Ahead of that threshold, the bulls will look to take out the bearish 50-Simple Moving Average (DMA) at 0.6972.
Despite the retreat, the NZD buyers remain hopeful, as the Relative Strength Index (RSI) still holds above the midline.
NZD/USD four-hour chart
On the flip side, immediate support is seen at the horizontal 21-Simple Moving Average (SMA) at 0.6910.
If the sellers manage to find a strong foothold below the 21-SMA, then a drop towards the triangle support at 0.6892 will be inevitable.
NZD/USD additional levels to watch
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
