NZD/USD Price Analysis: Bulls need validation from 0.5745
- NZD/USD refreshes intraday high, bounces off the short-term key DMA confluence.
- Bullish MACD signals, firmer RSI direct buyers toward a two-month-old resistance line.
- Weekly support line adds to the downside filters, monthly top also challenges bulls.
NZD/USD renews upside momentum targeting the key resistance line that defeated bulls the previous day.
In doing so, the Kiwi pair refreshes intraday high around 0.5715 while bouncing off the 21-DMA and 10-DMA confluence to aim for the descending trend line resistance from August 12, around 0.5745 at the latest.
Given the bullish MACD signals and the firmer RSI (14), not overbought, the buyers are all set to cross the immediate hurdle surrounding the mid-0.5700s.
However, the 0.5800 round figure and the monthly top around 0.5815 could act as extra upside filters to challenge the NZD/USD bulls before giving them control.
In that case, the 0.6000 psychological magnet and the previous monthly top of 0.6162 could gain the market’s attention.
Meanwhile, pullback moves remain elusive unless the quote stays beyond the aforementioned DMA confluence of 0.5660-65.
Also challenging the NZD/USD bears is an upward-sloping support line from October 13, close to 0.5630.
Should the pair sellers break the 0.5630 support, the odds of witnessing a fresh 2022 low, currently around 0.5510, can’t be ruled out.
Overall, NZD/USD is up for challenging the two-month-old bearish trend but the road to the north a bumpy and long.
NZD/USD: Daily chart
Trend: Further upside expected