NZD/USD technical analysis: Kiwi may revisit 200-day MA hurdle

NZD/USD's hourly chart shows bullish indicator divergence.
Kiwi may test former support-turned-resistance of the 200-day MA.

Omkar Godbole FXStreet Contributor

NZD/USD, which closed below the 200-day moving average (MA) hurdle on Tuesday, may revisit the former support-turned-resistance in the next few hours, as technical studies on the hourly chart are signaling seller exhaustion.

To start with, the relative strength index is flashing a bullish divergence. Further, the MACD histogram has turned bullish, having charted higher lows as opposed to lower highs on the NZD in the last 14 hours.

So, the pair may rise to the 200-day MA of 0.6715 before falling toward 0.6651 (61.8% Fib R of 0.6565/0.6791), as suggested by Tuesday's bearish marubozu candle.

The spot is currently trading at 0.6696.

Hourly chart

Trend: Minor bounce likely

Pivot points

1. R3 0.6802
2. R2 0.6782
3. R1 0.6743
PP 0.6723
1. S1 0.6684
2. S2 0.6664
3. S3 0.6625

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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