NZD/USD Price Analysis: Regains 0.6950 on crossing fortnight-old resistance
- NZD/USD extends previous day’s gains, pokes intraday top of late.
- Upbeat RSI, break of short-term resistance direct bulls toward 100-SMA hurdle.
- Previous resistance, weekly support line challenge pullback moves.
NZD/USD refreshes intraday high around 0.6950, up 0.35% on a day following China’s Caixin Services PMI data release during early Friday.
In doing so, the kiwi pair also reacts to the upbeat market sentiment while stretching the previous day’s gains to cross a downward sloping resistance line, now support, from September 23.
In addition to the brighter fundamentals and the trend line breakout, an upbeat RSI line, not overbought, also favor the NZD/USD advances towards the 100-SMA level near a fortnight-long horizontal area surrounding 0.6980-85.
It should be noted, however, that the quote’s run-up past 0.6985 will term the 0.7000 threshold and 0.7030 as intermediate resistances ahead of the late September peak near 0.7095.
Meanwhile, pullback moves will initially be challenged by the previous resistance line near 0.6935 before directing NZD/USD sellers towards an ascending support line from September 29, close to 0.6900.
During the quote’s weakness past 0.6900, September’s low of 0.6859 and the yearly bottom surrounding 0.6800 will be the key to watch.
NZD/USD: Four-hour 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.
