- NZD/USD retreats from three-week high, stays mildly bid despite the latest fall toward intraday low.
- Bullish chart formation, sustained trading beyond 100-SMA and downbeat US inflation keeps Kiwi pair buyers hopeful.
- Sellers need validation from 0.6025 and the Fed to retake control.
NZD/USD pares intraday gains, the fifth in a row, as bulls catch a breather at the highest level in three weeks heading into Wednesday’s European session. In doing so, the Kiwi pare reverses from the 200-SMA as market positions for the US Federal Reserve (Fed) Interest Rate Decision amid escalating hopes of no rate hike after witnessing 10 consecutive lifts in the Fed rates. With this, the quote stays depressed near 0.6155 despite posting mild gains at the latest.
Also read: NZD/USD bulls step in ahead of the Fed
In addition to the failure to cross the 200-bar Simple Moving Average (SMA), the NZD/USD pair’s pullback also takes clues from the overbought RSI (14) line. However, a one-week-old ascending trend channel keeps the Kiwi pair buyers hopeful.
Hence, the quote’s latest weakness can challenge the short-term bullish chart formation by poking the 0.6130 support with eyes on the 100-SMA support surrounding 0.6085.
It’s worth mentioning that multiple levels marked since late May highlights 0.6030-25 as the last defense of the NZD/USD buyers.
On the contrary, the aforementioned 200-SMA restricts immediate upside of the NZD/USD pair near 0.6175.
Following that, the 61.8% Fibonacci retracement level of the pair’s May 19-31 downside, near 0.6185, will precede the previously stated channel’s top line, near 0.6205, to challenge the bulls.
NZD/USD: Four-hour chart
Trend: Bullish
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