NZD/USD Price Analysis: Retreats within falling wedge, 0.6210 is the key hurdle
- NZD/USD struggles inside one-month-old bullish chart formation after easing from weekly top.
- Bullish MACD signals add strength to the upside bias.
- Sellers need validation from mid-November 2022 low for further dominance.
NZD/USD picks up bids to reverse the previous day’s pullback from an important resistance surrounding 0.6200 during early Wednesday. In doing so, the Kiwi pair appears softer within the one-month-long faling wedge bullish chart formation.
In addition to the latest pick-up, the bullish MACD signals also add strength to the recovery hopes.
However, a two-week-old descending resistance line, close to the 0.6200 threshold, restricts immediate upside of the quote.
Following that, a convergence of the 50-bar Simple Moving Average (SMA) and the stated faling wedge’s top line seems a tough nut to crack for the NZD/USD buyers around 0.6210.
In a case where the Kiwi pair remains firmer past 0.6210, the mid-February high near 0.6390 and the previous monthly top surrounding 0.6540 could act as intermediate halts during the theoretical run-up targeting the 0.6600 threshold.
On the flip side, pullback moves may witness multiple hurdles near 0.6170 and 0.6130 before poking the stated wedge’s lower line, close to 0.6120 by the press time.
Even if the NZD/USD bears defy the bullish chart pattern by breaking the 0.6120 support, lows marked during the mid-November 2022, around 0.6060 could challenge the pair’s further downside.
NZD/USD: Daily chart
Trend: Further upside expected