NZD/USD Price Analysis: Surges through 0.60 mark, fresh session tops

NZD/USD stages a strong recovery from three-week lows on Monday.
The 0.6040 support-turned-resistance might cap any subsequent gains.

Haresh Menghani FXStreet

The NZD/USD pair continued scaling higher through the early North American session and refreshed daily tops in the last hour. The pair has now reversed the previous session's negative move to three-week lows, with bulls now looking to build on the momentum further beyond the key 0.60 psychological mark.

The mentioned level marks 50-day SMA and is followed by a short-term ascending trend-channel support breakpoint, around the 0.6040 region. Meanwhile, bearish oscillators on 4-hourly/daily charts point to the possible emergence of some fresh selling near the mentioned support-turned-resistance zone.

Hence, it will be prudent to wait for some strong follow-through buying before confirming that the recent leg down is already over and positioning for any further near-term appreciating move. The pair might then aim to retest the 0.6150 supply zone en-route the 100-day SMA barrier, around the 0.6175 region.

On the flip side, the 0.5985-80 area now seems to protect the immediate downside, which if broken will add credence to the negative outlook and accelerate the slide further towards the 0.5920-10 region. A convincing break will set the stage for a further near-term downfall towards the 0.5860-50 zone.

NZD/USD daily chart

Technical levels to watch

NZD/USD

Overview
Today last price	0.6022
Today Daily Change	0.0088
Today Daily Change %	1.48
Today daily open	0.5934

Trends
Daily SMA20	0.6041
Daily SMA50	0.6006
Daily SMA100	0.6251
Daily SMA200	0.633

Levels
Previous Daily High	0.6016
Previous Daily Low	0.5921
Previous Weekly High	0.6157
Previous Weekly Low	0.5921
Previous Monthly High	0.6176
Previous Monthly Low	0.5843
Daily Fibonacci 38.2%	0.5957
Daily Fibonacci 61.8%	0.598
Daily Pivot Point S1	0.5898
Daily Pivot Point S2	0.5862
Daily Pivot Point S3	0.5802
Daily Pivot Point R1	0.5993
Daily Pivot Point R2	0.6053
Daily Pivot Point R3	0.6089

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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