- Bulls manage to regain control amid improving global risk sentiment.
- Strength beyond a short-term descending trend-line inspired bulls.
- A move towards the 0.6500 handle now looks a distinct possibility.
The NZD/USD pair showed some resilience below 200-hour EMA and managed to regain some positive traction on Tuesday. The momentum lifted the pair to two-week tops around the 0.6425 region, or levels beyond last week’s post-RBNZ swing high.
A sustained strength above a three-day-old descending trend-line resistance, around the 0.6405-10 region, was seen as a key trigger for bullish traders and behind the latest leg of an upsurge witnessed since the mid-European session amid improving risk sentiment.
Meanwhile, technical indicators on 4-hourly/daily charts have been gaining some bullish traction and support prospects for an extension of the ongoing positive momentum. However, slightly overbought conditions on the 1-hourly chart warrant some caution.
Hence, any subsequent move up seems more likely to confront a stiff resistance near the 0.6445-50 heavy supply zone, which if cleared decisively might negate any near-term bearish bias and set the stage for a further near-term appreciating move for the pair.
Above the mentioned barrier, the pair seems all set to aim towards reclaiming the key 0.6500 psychological mark before eventually aiming to test the very important 200-day SMA resistance near the 0.6520-25 region.
On the flip side, the 0.6400 handle now seems to protect the immediate downside and is closely followed by support near the 0.6380-75 horizontal zone. Failure to defend the said support levels is likely to accelerate the slide towards testing a strong support near the 0.6330-25 region.
NZD/USD 1-hourly chart
-637097673328986891.png)
Share
