NZD/USD Price Analysis: Bulls attack 12-day-old resistance below 0.6200
- NZD/USD picks up bids to refresh intraday high, extends recovery from six-week low.
- Impending bull cross signals further upside, 50-SMA adds to the upside filters.
- Sellers have a bumpy road to the south before testing yearly low.
NZD/USD refreshes intraday top around 0.6180 while extending the previous day’s rebound from a 1.5-month low during Tuesday’s mid-Asian session.
In doing so, the Kiwi pair pokes the downward sloping resistance line from August 12 by stretching the bounce from a seven-week-old horizontal support area.
That said, a clear upside break of the 0.6170 appears necessary to convince NZD/USD bulls ahead of pushing them to the 50-SMA hurdle surrounding 0.6195, as well as to the 0.6200 threshold.
Following that, the 61.8% Fibonacci retracement level of July-August upside near 0.6220 and the month-start peak of 0.6353 will be crucial to watch for the buyers.
Meanwhile, a pullback from the current levels remains elusive until staying beyond the aforementioned horizontal support zone near 0.6100.
Also acting as immediate support is the one-week-old downward sloping trend line, around 0.6085.
Even if the NZD/USD prices decline below 0.6085, the quote needs validation from the yearly low marked in July, around 0.6060, before challenging the 0.6000 psychological magnet.
NZD/USD: Four-hour chart
Trend: Limited recovery expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
