NZD/USD picks up bids to extend early-day recovery from one-month low. RSI, MACD conditions suggest Kiwi bears are running out of steam. Six-week-old previous support line, 200-SMA challenges NZD/USD buyers before giving them control. Sellers need validation from 0.6165 to retake control. NZD/USD snaps a two-day downtrend while extending the early-day rebound from the lowest levels in a month during the initial hour of Tuesday’s European session.
In doing so, the Kiwi pair cheers China data-inspired optimism for the Antipodeans while approaching a 1.5-month-old previous support line, now immediate resistance around 0.6200.
Apart from the China data-led upbeat signals for NZD/USD, the RSI rebound from the oversold territory and the receding bearish bias of the MACD also keeps the buyers hopeful. However, a clear upside break of the stated support-turned-resistance of around 0.6200 becomes necessary for the intraday buyers of the Kiwi pair. Even so, the 200-SMA level surrounding 0.6220 can act as an extra upside filter before giving control to the bulls.
Following that, the NZD/USD pair can approach a fortnight-long descending resistance line, close to 0.6290 by the press time. On the flip side, a horizontal area comprising lows marked in the last month, near 0.6170-65, restricts the immediate downside of the Kiwi pair. Also challenging the short-term NZD/USD bears is the 78.6% Fibonacci retracement of the pair’s March-April moves, near 0.6145. Overall, NZD/USD is likely to witness a corrective bounce but the bullish trend is still unconvincing to expect.