NZD/USD Price Analysis: Pullback needs validation from 0.5700
|- NZD/USD fades recovery moves from a two-year low.
- Convergence of previous resistance line, 100-HMA challenges sellers.
- RSI retreat favor pullback in prices but bullish MACD, 0.5700 breakout keeps buyers hopeful.
NZD/USD retreats to 0.5718 while snapping a two-day uptrend during Thursday’s quiet Asian session. In doing so, the Kiwi pair reverses the previous day’s bounce off the yearly bottom as the RSI (14) eases from the overbought region.
Even so, the quote keeps Wednesday’s upside break of the 0.5700 resistance confluence comprising the 100-HMA and a downward sloping trend line from September 13, now acting as immediate support.
Also adding strength to the 0.5700 support level is the 23.6% Fibonacci retracement of September 13-28 moves. It should be noted that the bullish MACD signals also keep the NZD/USD buyers hopeful.
That said, the 50-HMA acts as the last defense of the pair buyers around 0.5660, a break of which won’t hesitate to recall the bears targeting the fresh yearly low, currently near 0.5565.
Meanwhile, recovery moves need to cross the latest swing high surrounding 0.5740 to recall the NZD/USD buyers. Following that, the September 22 swing low near 0.5800 will be in focus.
However, the traders can doubt the recovery unless the pair remains below the 61.8% Fibonacci retracement level of 0.5935.
NZD/USD: Hourly chart
Trend: Further upside expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.