NZD/USD Price Analysis: Bulls cross 0.6215 EMA confluence to retake control
- NZD/USD picks up bids to refresh intraday high, snaps two-day downtrend.
- Clear break of 100-EMA, 200-EMA convergence joins upbeat oscillators to favor Kiwi pair bulls.
- Sellers need validation from three-week-old ascending trend line to retake control.
NZD/USD bulls are back to the table, after a two-day absence, as the Kiwi pair renews its intraday high around 0.6220 during early Tuesday.
In doing so, the major currency pair justifies the previous day’s U-turn from a three-week-old ascending trend line, as well as the successful upside break of the key Exponential Moving Averages (EMAs). Also adding strength to the upside bias are the bullish MACD signals and the upbeat RSI (14) line, not overbought.
With this, the NZD/USD pair is well set for the upside momentum even if multiple hurdles around 0.6250 and 0.6270 could test the buyers before directing them to the monthly high of around 0.6295.
It’s worth noting that the Kiwi pair’s run-up beyond 0.6295 needs validation from the 0.6300 round figure before directing the bulls toward the mid-February swing high of around 0.6390.
On the contrary, a convergence of the 100-EMA and 200-EMA joins the 38.2% Fibonacci retracement level of the NZD/USD pair’s March 08-23 run-up to highlight 0.6215 as the strong downside support.
Following that, the aforementioned ascending trend line from March 08, close to 0.6185 by the press time, may challenge the NZD/USD bears.
NZD/USD: Hourly chart
Trend: Further upside 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.
