NZD/USD Price Analysis: Monthly resistance line rejects bulls around 0.7000
- NZD/USD consolidates the heaviest daily gains in two weeks.
- Bullish MACD, failures to stay below 0.6920 keeps buyers hopeful.
- 200-DMA adds to the upside barriers, September 2020 tops may lure bears below yearly low.
NZD/USD steps back from a fortnight top to 0.7000, down 0.15% intraday, amid early Friday. The kiwi pair jumped the most in two weeks the previous day but couldn’t cross a downward sloping trend line.
Given the bullish MACD and the pair’s repeated failures to break the 0.6920 horizontal support zone, established since July 13, NZD/USD prices are likely to remain firmer.
Even so, a short-term pullback to the stated horizontal support line can’t be ignored wherein 0.6950 may act as an intermediate halt.
If at all the pair sellers remain dominant past 0.6920, the yearly low close to 0.6880 holds the key to further south-run targeting late 2020 tops surrounding 0.6800.
Alternatively, a daily closing beyond 0.7020 could renew buying interest in the NZD/USD. Following that, 200-DMA level around 0.7100 and tops marked during June 17 and July 07, around 0.7110, should challenge the bulls.
Overall, NZD/USD remains in the recovery mode despite having a bumpy road ahead.
NZD/USD: Daily chart
Trend: Further upside expected