- The pair regains some traction on Wednesday and climbs to weekly tops.
- Bulls are likely to wait for a sustained move beyond 0.6330-35 supply zone.
The NZD/USD pair continued showing some resilience below 100-hour EMA and managed to regain some positive traction on Wednesday. The intraday uptick lifted the pair to the top end of its weekly trading range and closer to the 0.6330-35 supply zone.
The mentioned region coincides with a resistance marked by a short-term descending trend-line, extending from last Friday’s swing high, and should act as a key pivotal point for short-term traders and help determine the pair’s next leg of a directional move.
Meanwhile, technical indicators on the daily chart have recovered from the bearish territory and also gaining positive traction on hourly charts, supporting prospects for an extension of the pair’s recent recovery move from multi-year lows set earlier this October.
Sustained move beyond the mentioned hurdle has the potential to lift the pair further towards reclaiming the 0.6400 handle before bulls eventually aim to test the 0.6425-30 supply zone en-route September monthly swing highs resistance near mid-0.6400s.
On the flip side, the 100-hour EMA, currently near the 0.6300 round-figure mark, might continue to protect the immediate downside, which if broken might negate the constructive outlook and accelerate the slide back towards challenging the 0.6245 horizontal support.
NZD/USD 1-hourly chart
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