- The recovery move extends further beyond 100-hour SMA.
- Technical set-up points to additional recovery to 0.6330 area.
The NZD/USD pair built on the overnight recovery move from multi-year lows and continued gaining positive traction for the second consecutive session on Tuesday, with bulls now looking to extend the momentum further beyond the 0.6300 round-figure mark.
Given the previous session’s breakthrough a short-term descending trend-channel formation on the 1-hourly chart, a follow-through move beyond 100-hour SMA and 23.6% Fibo. level of the 0.6452-0.6254 recent downfall support prospects for additional gains.
Moreover, technical indicators on the 1-hourly chart have been gaining positive traction and also recovered from the bearish territory on the 4-hourly chart, further reinforcing the near-term constructive set-up amid improving risk sentiment.
However, oscillators on the daily chart maintained their bearish bias and warrant some caution before placing any aggressive bets. This coupled with a follow-through USD buying interest might keep a lid on any runaway rally, at least for the time being.
Meanwhile, the recovery could get extended but seems more likely to fizzle out near 38.2% Fibo. level resistance near the 0.6330 region. On the flip side, the descending trend-channel resistance breakpoint – around the 0.6275 region – now seems to act as immediate support.
NZD/USD 1-hourly chart
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