NZD/USD Price Analysis: Bulls need validation from 0.6140 to keep reins
- NZD/USD grinds higher around intraday top, eyes the first weekly gains in four.
- Sustained break of two-week-old resistance line, 50-SMA joins firmer oscillators to favor buyers.
- Convergence of 100-SMA, monthly high restricts immediate upside.
NZD/USD remains on the front foot around 0.6105 as bulls cheer upside break of the previous key hurdles during Friday’s initial European session. With this, the Kiwi pair also braces for the first weekly gain after printing the red in the last three consecutive weeks.
The quote’s latest upside could be linked to the successful break of a descending trend line from August 26 and the 50-SMA, currently around 0.6085. Also keeping buyers hopeful are the bullish MACD signals and the firmer RSI, not overbought.
It should, however, be noted that the upside momentum remains elusive unless crossing the 0.6140 resistance confluence, including the 100-SMA and the monthly high marked the last Friday.
Following that, the run-up towards 0.6200 and then to the late August swing high near 0.6255 can’t be ruled out.
On the contrary, pullback moves can be ignored until the quote stays beyond 0.6085 resistance-turned-support.
In a case where NZD/USD prices drop below 0.6085, the 0.6030 level may test the bears before directing them to the yearly low marked on Wednesday around the 0.6000 psychological magnet.
NZD/USD: Four-hour chart
Trend: Limited upside expected