NZD/USD Price Analysis: Bulls prepare for an impulsive wave, 0.6160 a key hurdle
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- Investors brace for a breakout of an Ascending Triangle for a sheer upside.
- A golden cross, represented by 50-and 200-EMAs at 0.6100, adds to the upside filters.
- The upside momentum will get triggered if the RSI (14) recaptures the 60.00-80.00 range.
The NZD/USD pair is displaying back-and-forth moves in a narrow range of 0.6132-0.6140 in the early Tokyo session ahead of the US Consumer Price Index (CPI) data. The asset displayed exhaustion signals on Monday after failing to sustain above the prior week’s high at 0.6152. Broadly, the asset is advancing sharply higher after printing a fresh two-year low around 0.6000 last week.
On an hourly scale, the major is on the verge of delivering a breakout of the Ascending Triangle chart pattern. The upward sloping trendline of the above-mentioned chart pattern is placed from Friday’s low at 0.6031 while the horizontal resistance is plotted from August 31 high at 0.6160. A breakout of the bullish-bias triangle pattern will expand volatility and will display wider ticks and heavy volume.
A golden cross, represented by the 50-and 200-period Exponential Moving Averages (EMAs) at 0.6100, has underpinned the kiwi bulls against the greenback.
The Relative Strength Index (RSI) (14) has slipped below the bullish range of 60.00-80.00, which warrants a mild correction so that more participants could ride with the impulsive wave.
Should the asset break above Monday’s high at 0.6159 decisively, the antipodean will drive the asset towards August 25 high at 0.6252. A breach of the latter will send the major towards the round-level hurdle at 0.6300.
On the flip side, the kiwi bulls could lose their grip if the asset drops below September 2 low at 0.6050. An occurrence of the same will drag the asset towards the psychological support at 0.6000, followed by 20 April 2020 low at 0.5910.
NZD/USD hourly chart
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