NZD/USD Price Analysis: Rising wedge lures Kiwi bears, 0.6200 in the spotlight
- NZD/USD remains pressured within bearish chart formation, defends previous day’s pullback from three-week high.
- While 0.6200 holds the key to further downside, 0.6100 appears the last defense of the Kiwi buyers.
- Kiwi pair’s recovery remains elusive below 0.6400, bulls appear running out of steam of late.
NZD/USD bounces off intraday low as it struggles to confirm the fortnight-old rising wedge bearish chart formation amid early Monday morning in Europe. That said, the Kiwi pair licks its wounds near 0.6215 while keeping the previous day’s retreat from the monthly peak.
It’s worth noting that the lower-high formation joins the bearish MACD signals to lure the NZD/USD sellers. However, a clear downside beak of the stated rising wedge’s bottom line, around 0.6200 by the press time becomes necessary for the sellers to keep the reins.
Even so, the 200-SMA support of near 0.6175 can prod the bears.
Above all, a convergence of the 100-SMA and the previous resistance line stretched from early May, near 0.6100. appears crucial support to break for the NZD/USD sellers to retake control.
Meanwhile, a descending resistance line from Thursday, near 0.6240 at the latest, restricts the immediate upside of the NZD/USD pair ahead of the stated wedge’s top line, close to 0.6280 at the latest.
Should the Kiwi price remains firmer past 0.6280, the odds of witnessing a run-up toward the previous monthly high of nearly 0.6385 can’t be ruled out.
NZD/USD: Four-hour chart
Trend: Limited downside expected