- NZD/USD remains on the front foot around intraday high inside weekly rising wedge.
- Gradually improving RSI conditions suggest further grinding of Kiwi pair towards the north.
- 200-HMA, fortnight-old horizontal hurdle challenge NZD/USD bulls.
- Clear break of 0.6240 can recall sellers targeting monthly low.
NZD/USD remains firmer around the weekly top as it prints mild gains near 0.6265 during the second consecutive positive day heading into Thursday’s European session. In doing so, the Kiwi pair stays within a bearish chart formation called a rising wedge comprising multiple levels marked since the last Friday.
However, the gradual uplift of the RSI (14) line, not overbought, keeps the NZD/USD buyers hopeful of defying the stated bearish chart formation by crossing the 0.6275 upside hurdle.
Even so, the 200-HMA and a fortnight-old horizontal resistance area, respectively near 0.6285 and 0.6315, can prod the NZD/USD bulls before directing them to the monthly peak of 0.6385.
It’s worth noting that tops marked in February and April highlight the 0.6385-90 area as a short-term key hurdle for the pair to cross. Also acting as an important upside barrier is the 0.6400 round figure.
On the contrary, a downside break of the 0.6240 mark comprising the stated wedge’s lower line can confirm the bearish chart pattern, which theoretically suggests a fall towards the monthly of near 0.6160.
However, the latest swing low and the previous monthly bottom, close to 0.6180 and 0.6110, act as additional downside filters for the NZD/USD pair traders to watch during the quote’s further declines.
Overall, NZD/USD is likely to grind higher but the bearish chart formation and the key Hourly Moving Average (HMA) prod the bulls.
NZD/USD: Hourly chart
Trend: Limited 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds on to intraday gains after upbeat US data
EUR/USD remains in positive ground on Friday, as profit-taking hit the US Dollar ahead of the weekend. Still, Powell's hawkish shift and upbeat United States data keeps the Greenback on the bullish path.
GBP/USD pressured near weekly lows
GBP/USD failed to retain UK data-inspired gains and trades near its weekly low of 1.2629 heading into the weekend. The US Dollar resumes its advance after correcting extreme overbought conditions against major rivals.
Gold stabilizes after bouncing off 100-day moving average
Gold trades little changed on Friday, holding steady in the $2,560s after making a slight recovery from the two-month lows reached on the previous day. A stronger US Dollar continues to put pressure on Gold since it is mainly priced and traded in the US currency.
Bitcoin to 100k or pullback to 78k?
Bitcoin and Ethereum showed a modest recovery on Friday following Thursday's downturn, yet momentum indicators suggest continuing the decline as signs of bull exhaustion emerge. Ripple is approaching a key resistance level, with a potential rejection likely leading to a decline ahead.
Week ahead: Preliminary November PMIs to catch the market’s attention
With the dust from the US elections slowly settling down, the week is about to reach its end and we have a look at what next week’s calendar has in store for the markets. On the monetary front, a number of policymakers from various central banks are scheduled to speak.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.