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
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.
