NZD/USD renews upside momentum targeting the key resistance line that defeated bulls the previous day.

In doing so, the Kiwi pair refreshes intraday high around 0.5715 while bouncing off the 21-DMA and 10-DMA confluence to aim for the descending trend line resistance from August 12, around 0.5745 at the latest.

Given the bullish MACD signals and the firmer RSI (14), not overbought, the buyers are all set to cross the immediate hurdle surrounding the mid-0.5700s.

However, the 0.5800 round figure and the monthly top around 0.5815 could act as extra upside filters to challenge the NZD/USD bulls before giving them control.

In that case, the 0.6000 psychological magnet and the previous monthly top of 0.6162 could gain the market’s attention.

Meanwhile, pullback moves remain elusive unless the quote stays beyond the aforementioned DMA confluence of 0.5660-65.

Also challenging the NZD/USD bears is an upward-sloping support line from October 13, close to 0.5630.

Should the pair sellers break the 0.5630 support, the odds of witnessing a fresh 2022 low, currently around 0.5510, can’t be ruled out.

Overall, NZD/USD is up for challenging the two-month-old bearish trend but the road to the north a bumpy and long.

Yesterday, NZD rose to a high of 0.5675 before pulling back sharply. The price actions appear to be part of a consolidation phase and we expect NZD to trade between 0.5590 and 0.5800 for the time being. Looking ahead, NZD has to break clearly above 0.5810 before a sustained advance is likely. 

The current movement is NZD appears to be part of a consolidation. For today, we expect NZD to trade between 0.5645 and 0.5750.

Kiwi to enter an intermediate consolidation phase

Oct 25 2022