NZD/USD Price Analysis: Extends bounce off 200-SMA towards 0.6560 hurdle
- NZD/USD pares the biggest daily loss in two weeks, picks up bids to refresh intraday high of late.
- 12-day-old support line, 200-SMA challenge bears from retaking control.
- RSI conditions hint at further recovery, bulls need validation from five-week-old horizontal resistance.
NZD/USD refreshes intraday high around 0.6530 as it consolidates the biggest daily fall in a fortnight during Wednesday’s Asian session.
In doing so, the Kiwi pair stretches the previous day’s rebound from the 200-SMA towards a horizontal area comprising multiple levels marked since late April, around 0.6560.
The recovery moves also gain support from RSI (14) as the oscillator bounced off the 50 level as the NZD/USD prices improve.
Should the quote manage to successfully cross the 0.6560 hurdle, the late April swing high around 0.6650 and the 0.6700 threshold may entertain the pair buyers.
Meanwhile, an upward sloping trend line from mid-May, around 0.6490, could challenge the NZD/USD pullback ahead of the 200-SMA level near 0.6480.
However, the pair’s weakness below the key moving average won’t hesitate to direct the bears towards the monthly horizontal support zone near 0.6410.
NZD/USD: Four-hour chart
Trend: Further recovery expected
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