- The positive momentum once again fails near 100-day SMA.
- The overnight resistance breakpoint helped limit the downtick.
- The technical set-up support prospects for some dip-buying.
The NZD/USD pair failed to capitalize on the previous session’s goodish intraday positive move to over two-week tops and once again started retreating from 100-day SMA barrier on Wednesday.
The pullback dragged the pair below 23.6% Fibonacci level of the 0.6324-0.6437 recent upsurge, albeit bulls showed some resilience near a one-week-old descending trend-line resistance breakpoint.
The mentioned resistance-turned-support is closely followed by 100-hour SMA, which should now act as a key pivotal point for intraday traders ahead of the release of the latest FOMC meeting minutes.
Meanwhile, technical indicators on hourly/daily charts have still managed to hold in the bullish territory and continue to support prospects for the emergence of some dip-buying interest at lower levels.
Hence, it will be prudent to wait for a sustained weakness below 100-hour SMA support, currently near the 0.6400 handle, before confirming that the recent bounce might have run out of the steam.
On the flip side, bulls are likely to wait for a sustained move beyond 100-day SMA, around the 0.6435 region, above which the pair is likely to aim towards monthly swing highs near the 0.6465 region.
Some follow-through buying has the potential to continue lifting the pair further towards reclaiming the key 0.6500 psychological mark en-route the very important 200-day SMA barrier.
NZD/USD 1-hourly chart
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