NZD/USD Price Analysis: Bulls run out of steam as key EMAs test upside near 0.6250
- NZD/USD struggles to extend three-day uptrend near the highest levels in a fortnight.
- 100, 200 EMAs restrict immediate upside even as trend line breakout, bullish MACD signals favor buyers.
- Four-month-old horizontal area is the key downside support.
NZD/USD seesaws around 0.6235-30 during the early Wednesday morning in Asia-Pacific as bulls jostle with the key Exponential Moving Averages (EMA) to extend the three-day uptrend.
It should be noted, however, that the Kiwi pair’s latest run-up could be linked to a clear U-turn from the four-month-old horizontal support zone, around 0.6090-80, as well as clear upside break of the downward-sloping resistance line, now immediate support close to 0.6175.
Apart from the aforementioned catalysts, the bullish MACD signals also favor the NZD/USD upside.
However, the 100-day EMA precedes the 200-day EMA to restrict immediate upside of the Kiwi pair near 0.6240 and 0.6265 in that order.
Should the quote manages to remain firmer past 0.6265, the odds of witnessing a quickly run-up towards the 0.6300 threshold appears bright.
Following that, the mid-February swing high, close to 0.6390, holds the key to the NZD/USD bull’s further dominance towards poking February’s high near 0.6540.
Alternatively, a downside break of the resistance-turned-support near 0.6175 could lure the NZD/USD bears. Though, a sustained break of the horizontal area comprising multiple lows marked since November, near 0. 6090-80, will be necessary to push back the buyers.
Overall, NZD/USD is likely to rise further but the EMAs hold the gate for bulls.
NZD/USD: Daily chart
Trend: Further upside expected