NZD/USD technical analysis: Refreshes weekly tops, awaits a move beyond 0.6325-30 supply zone
- The pair quickly reverses an early Asian session dip to one-week lows.
- A sustained move above 0.6325-30 area needed to confirm bullish bias.
The NZD/USD pair built on its solid intraday rebound from one-week lows and is currently placed at the top end of its weekly trading range, around the 0.6325 supply zone. The mentioned region has been acting as a key barrier over the past one week or so and hence, should now act as a key pivotal point for short-term traders.
Meanwhile, technical indicators on hourly charts have been gaining positive traction and also recovered from the bearish territory on the daily chart. The set-up support prospects for an eventual near-term bullish breakout and an extension of the pair's recent recovery move from multi-year lows set earlier this October.
On a sustained move beyond the mentioned barrier, the pair is likely to aim towards reclaiming the 0.6400 handle. The momentum could further get extended even beyond the 0.6425-30 intermediate resistance towards testing September monthly swing highs resistance near mid-0.6400s.
On the flip side, any meaningful slide back below the 0.6300 handle now seems to find some support near the 200-hour SMA, currently near the 0.6285 region, which if broken might prompt some aggressive technical selling and accelerate the slide back towards challenging the 0.6245 horizontal support.
NZD/USD 1-hourly chart
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Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
