NZD/USD Price Analysis: Recovery moves attack weekly hurdle above 0.7100
- NZD/USD stays on the front foot around intraday top.
- Momentum rebound favors bulls to cross immediate resistance line inside falling wedge bullish pattern.
- Key SMA confluence adds filters to the corrective pullback.
NZD/USD remains well bid near the intraday top of 0.7140, up 0.23% on a day, during early Wednesday. The kiwi pair dropped to the fresh low since April 14 the previous day before bouncing off 0.7105.
The corrective pullback battles a one-week-old resistance line near the lower end of the three-week-long falling wedge bullish formation.
As the upward sloping Momentum line backs recent recovery, the quote is likely to cross the immediate hurdle around 0.7140, which in turn could escalate the run-up towards 0.7165.
However, any further upside will be tested by the stated wedge’s resistance line close to 0.7200, quickly followed by a convergence of 100 and 200-SMAs surrounding 0.7210-15.
On the flip side, descending support line from May 21, forming part of the falling wedge, could test the pullback moves close to the 0.7100 threshold.
In a case where the NZD/USD bears keep controls past 0.7100, the early April highs near 0.7070 should return to the chart.
NZD/USD four-hour chart
Trend: Further recovery 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.
