NZD/USD Price Analysis: Fades recovery moves below 0.6400 as 50-SMA probes bulls
|- NZD/USD prints mild gains to keep Friday’s recovery moves between 50-SMA and 100-SMA.
- Impending bull cross on MACD, sustained bounce off monthly support line keep buyers hopeful.
- 200-SMA, monthly resistance line act as additional trading filters.
NZD/USD grinds higher towards 0.6400, around 0.6385 by the press time, as buyers flirt with the 50-SMA during early Monday.
In doing so, the Kiwi pair defends the previous day’s rebound from the 100-SMA, as well as the recovery moves from an upward-sloping support line from November 17.
Given the impending bull cross on the MACD, as well as the quote’s repeated hesitance in breaking the 100-SMA, NZD/USD is likely to overcome the hurdle of 0.6392 level comprising the 50-SMA.
Following that, the run-up could aim for the 0.6400 and the 0.6500 thresholds before the monthly resistance line, around 0.6535 at the latest, could challenge the bulls.
In a case where NZD/USD manages to keep the reins past 0.6535, June’s top at around 0.6575 and the 0.6600 round figure will be in focus.
Meanwhile, the 100-SMA level surrounding 0.6345 precedes the one-month-long ascending support line, mentioned previously, to restrict the immediate downside near 0.6335.
It’s worth noting, however, that a downside break of the 0.6335 support could quickly drag NZD/USD prices towards the 200-SMA level surrounding 0.6200. However, any further downside appears bumpy.
NZD/USD: Four-hour chart
Trend: Further recovery expected
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