NZD/USD Price Analysis: Previous resistance line, EMA confluence prod Kiwi bears below 0.6200
- NZD/USD struggles to extend the previous day’s U-turn from a fortnight high, seesaws near intraday low of late.
- Downside break of weekly support line, bearish MACD signals favor Kiwi sellers.
- Two-month-old previous resistance line limits immediate fall, convergence of 50-EMA, 200-EMA appears strong support.
- Recovery needs validation from 0.6250 to convince bulls.
NZD/USD remains directionless at the intraday low surrounding 0.6170 during the mid-Asian session on Thursday. In doing so, the Kiwi pair struggles to extend the previous day’s losses, the first in four, while also reversing the pullback from the highest levels in two weeks.
The kiwi pair’s previous losses could be linked to a downside break of the one-week-old rising trend line, now immediate resistance around 0.6200, as well as bearish MACD signals. Adding strength to the downside bias could be the RSI (14) line’s U-turn from the overbought territory.
However, the resistance-turned-support stretched from early May, near 0.6165 by the press time, restricts immediate downside of the NZD/USD pair.
Following that, a convergence of the 50-bar and 200-bar Exponential Moving Averages (EMAs), around 0.6150 at the latest, will be a tough nut to crack for the Kiwi bears.
Meanwhile, a corrective bounce past the immediate weekly resistance line, previous support near 0.6200, can propel the NZD/USD buyers to challenge the weekly high of around 0.6215.
Even so, the 61.8% Fibonacci retracement of the pair’s May month downside and the previous monthly peak, respectively near 0.6235 and 0.6250, could challenge the NZD/USD bulls before giving them control.
NZD/USD: Four-hour chart
Trend: Corrective bounce expected