The NZD/USD extends its uptrend, hitting a three-day high at around 0.6172, as buyers see a break above technical resistance at the 20-day EMA. Although data from the United States (US) further cemented the case for a Federal Reserve (Fed) hike, the New Zealand Dollar (NZD) advances steadily. At the time of writing, the NZD/USD is trading at 0.6182.

The NZD/USD is still in a downtrend though it has recovered some ground. The 20-day Exponential Moving Average (EMA) at 0.6187 would be the first resistance that buyers will test as they aim toward 0.6200. Once broke, the latter will be challenged, as the 100-day EMA at 0.6218 would appear in front of the bulls

Not only the repeated failures to cross the 200-DMA hurdle, around 0.6160 by the press time, but the bearish MACD signals also weigh on the Kiwi pair prices. That said, a steady RSI (14) line signals further grinding of the NZD/USD.

It’s worth noting that the quote’s break of the 200-DMA resistance surrounding 0.6160 isn’t an open welcome for the bulls as a downward-sloping resistance line from early April, close to 0.6180 could challenge the pair’s further upside.

Even if the NZD/USD price rallies beyond 0.6180, multiple levels marked during late March around the 0.6200 threshold can act as the last defense of the bears.

On the flip side, the recent bottom around the 0.6100 round figure can prod the NZD/USD bears before directing them to the key support line stretched from November 2022, around 0.6090 at the latest.

Should the NZD/USD pair offers a daily closing below 0.6090, the previous monthly low of near 0.6085 and the mid-November 2022 bottom of around 0.6065 may act as an extra filter towards the south before welcoming the bears with open hands.

Kiwi is still overall in a downtrend

Apr 30 2023