NZD/USD Price Analysis: Regains upside momentum towards 0.7085
- NZD/USD picks up bids to refresh intraday high, consolidates Friday’s losses.
- Firmer Momentum line, rebound from 50% Fibonacci retracement favor buyers.
- 100-SMA, 23.6% Fibonacci retracement guard recovery moves, pullback may eye for fresh monthly low.
NZD/USD reverses Friday’s downside while picking up the bids to refresh intraday top near 0.7035 during early Monday.
In doing so, the Kiwi pair keeps the last week’s rebound from the 50% Fibonacci retracement (Fibo.) of late August to early September upside, around 0.6985, amid an upward sloping Momentum line supporting the recovery moves.
That said, the NZD/USD prices aim for a one-week-old horizontal hurdle surrounding 0.7060 during the further advances.
However, 100-SMA and 23.6% Fibo. confluence near 0.7085 will be a tough nut to crack for the pair buyers afterward. Also acting as an upside filter is a three-week-old resistance line near 0.7125.
On the contrary, the pair’s pullback moves may gain little attention unless staying beyond the stated 50% Fibonacci retracement level near 0.6985, as well as the monthly low of 0.6981.
Should NZD/USD sellers retake controls past 0.6981, the late August levels surrounding 0.6930 may return to the chart.
Overall, NZD/USD is in a recovery mode but the bulls have a bumpy road ahead.
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.
