NZD/USD Price Analysis: Further upside towards 0.6575 appears imminent
- NZD/USD crosses two-week-old resistance line to highlight trader’s bullish bias.
- Upbeat MACD, RSI adds strength to the run-up targeting fresh multi-month high.
- Convergence of 61.8% Fibonacci Expansion, June 2022 high appears a tough nut to crack for buyers.
- Sellers need 100-SMA breakdown to confirm further downside.
NZD/USD takes the bids to refresh the weekly high near 0.6520 during early Thursday’s Asian session. In doing so, the Kiwi pair extends its rebound from the 100-SMA to cross a downward-sloping resistance line from January 18.
Not only the successful recovery from the 100-SMA and the trend line breakout but bullish MACD signals and the upbeat RSI (14) also keep NZD/USD buyers hopeful.
As a result, the Kiwi pair is all set to poke the previous monthly high of 0.6530.
It’s worth noting, however, that a convergence of June 2022 high and 61.8% Fibonacci Expansion (FE) of its January 06-19 moves, near 0.6575, appears a strong resistance for the NZD/USD bulls to cross to keep the reins afterward.
On the flip side, pullback remains elusive unless the NZD/USD pair stays above the recent resistance-turned-support line near the 0.6500 round figure.
Even if the NZD/USD price drops below 0.6500 resistance-turned-support, the 100-SMA and the weekly low, respectively around 0.6440 and 0.6410, could challenge the pair’s further downside.
In a case where NZD/USD remains weak past 0.6410, the 200-SMA level near 0.6375 could act as the last defense of the bears.
NZD/USD: Four-hour chart
Trend: Further upside expected