- Antipodean bulls are firmer above 20-period EMA.
- The RSI (14) has surpassed 60.00, showing no signs of divergence and overbought.
- The kiwi is underpinned against the greenback after a pullback near 0.6820.
The NZD/USD is inching higher after hitting a low of 0.6767 as the demand for the risk-sensitive assets have jumped sharply. The major has printed a fresh weekly high at 0.6844 and is expected to continue its strength going forward.
On a four-hour scale, NZD/USD is auctioning in a rising channel in which the market participants consider pullbacks towards the lower end as a buying opportunity. The upper end of the rising channel is placed from February 4 high at 0.6684 and the lower end is marked from January 28 low at 0.6529. The major has sensed support near the 200-period Exponential Moving Average (EMA) at around 0.6760. The asset has breached the trendline placed from March 7 high at 0.6926.
The pair is comfortable holding above the 20-period EMA at 0.6797, which adds to the upside filters.
The Relative Strength Index (RSI) (14) has breached 60.00 from below, showing no signs of divergence and overbought. Holding above 60.00 levels indicates a bullish setup going forward.
Now, the kiwi bulls will find significant bids near pullback at the above-mentioned trendline around 0.6820. A successful test of the trendline will drive the pair higher towards March 10 high at 0.6876, which will be followed by March 7 high at 0.6926.
On the flip side, bears can dictate levels if the pair slip below February 22’s average traded price at 0.6718 decisively, which will drag the major to February 27 low at 0.6664. Breach of the latter will drag the asset towards February 24 low at 0.6630.
NZD/USD hourly chart
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