Looks ready to challenge the 0.6400 hurdle
- NZD/USD pulls back from intraday high, consolidates recent losses around yearly low.
- Firmer oscillators, sustained trading above key near-term support lines keeps buyers hopeful.
- 200-SMA, monthly peak challenge to the upside, bears need to be validated from 0.6280.
NZD/USD remains slightly bullish above 0.6300 as it consolidates recent losses around 0.6325 ahead of Monday’s European session.
In doing so, the Kiwi pair warrants an upward break of the monthly resistance line, as well as a sustained trade above the weekly ascending trendline.
Bullish MACD signals and a bullish RSI line that support NZD/USD’s rebound from the yearly low are also keeping buyers hopeful.
However, the latest swing top and the 200-SMA together offer a significant hurdle to the north around 0.6400.
Thereafter, the 61.8% Fibonacci retracement of the June 3-14 decline near 0.6435 could serve as a validation point for the rally targeting the monthly high of 0.6575.
On the other hand, the immediate support line, as well as the previous resistance line, challenges the short-term dip in NZD/USD around 0.6290 and 0.6280 respectively.
If the quote falls below 0.6280, the yearly low around 0.6200 and the April 2020 high near 0.6175 could limit further declines.
Overall, NZD/USD remains on the bearish radar even though the short-term rally remains widely anticipated.
NZD/USD: four-hour chart
Trend: continuation of the expected recovery