NZD/USD Price Analysis: Stuck in rising channel amid light trading
- NZD/USD lacks a clear directional bias as NZ traders are out.
- The kiwi ranges within a rising channel on the hourly chart.
- Buyers remain hopeful while above 50-HMA, with bullish RSI.
Amid holiday-thinned light trading, NZD/USD is posting small losses so far this Monday, as the sellers continue to guard the 0.6700 fencing.
Increased haven demand for the US dollar, amid growing coronavirus concerns globally and US fiscal wrangling, continues to weigh down on the higher-yielding assets such as the kiwi.
From a near-term technical perspective, the spot continues to wave within a four-day-long rising channel.
At the moment, the price appears to lack a clear directional bias while battling the 21-hourly moving average (HMA) at 0.6684.
However, the buyers remain hopeful, as the hourly Relative Strength Index point north above the midline, currently at 54.57.
The bulls need to clear the 0.6700 resistance in order to regain the upside momentum. The next hurdle is the rising trendline resistance at 0.6715.
Alternatively, the bullish bias remains intact so long as the price holds above the 50-HMA at 0.6673. A firm break below the latter could expose the channel support at 0.6668.
An hourly closing below that level would validate a rising channel breakdown, opening floors for at test of the 100-HMA support at 0.6640.
NZD/USD: Hourly chart
NZD/USD: Additional levels
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.
