Home NZD/USD Price Analysis: Break of 0.6550 can confirm falling wedge on 4-hour chart
FXStreet News

NZD/USD Price Analysis: Break of 0.6550 can confirm falling wedge on 4-hour chart

  • NZD/USD trims early-day losses while bouncing off 0.6529.
  • The bullish pattern’s break will target 200-bar SMA as immediate resistance.
  • 61.8% of Fibonacci retracement can offer nearby support during further declines.

NZD/USD picks up the bids near 0.6535, down 0.10% on a day, ahead of the European session on Monday. The kiwi pair earlier dropped amid political uncertainty at New Zealand (NZ) after the government delayed the general election following the coronavirus (COVID-19) resurgence. However, the latest comments from NZ Finance Minister Grant Robertson seems to have underpinned the quote’s pullback moves.

Even so, the resistance line of a two-week-old falling wedge joins 50% Fibonacci retracement of June 30 to July 31 upside while highlighting 0.6550 as the key upside barrier.

While a clear break of 0.6550 will confirm the theoretical bull-run towards crossing 0.6800, 200-bar SMA near 0.6600 and the monthly top near 0.6715 will add filters to the north-run.

Alternatively, 61.8% Fibonacci retracement level of 0.6510 precedes the mentioned pattern’s support, at 0.6500 now, to restrict the quote’s immediate downside.

In a case where the bears keep the reins past-0.6500, June 26 high close to 0.64540 will in the spotlight.

NZD/USD four-hour chart

Trend: Further recovery expected

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.