• NZD/USD picks up bids to refresh intraday high, extends recovery from six-week low.
  • Impending bull cross signals further upside, 50-SMA adds to the upside filters.
  • Sellers have a bumpy road to the south before testing yearly low.

NZD/USD refreshes intraday top around 0.6180 while extending the previous day’s rebound from a 1.5-month low during Tuesday’s mid-Asian session.

In doing so, the Kiwi pair pokes the downward sloping resistance line from August 12 by stretching the bounce from a seven-week-old horizontal support area.

That said, a clear upside break of the 0.6170 appears necessary to convince NZD/USD bulls ahead of pushing them to the 50-SMA hurdle surrounding 0.6195, as well as to the 0.6200 threshold.

Following that, the 61.8% Fibonacci retracement level of July-August upside near 0.6220 and the month-start peak of 0.6353 will be crucial to watch for the buyers.

Meanwhile, a pullback from the current levels remains elusive until staying beyond the aforementioned horizontal support zone near 0.6100.

Also acting as immediate support is the one-week-old downward sloping trend line, around 0.6085.

Even if the NZD/USD prices decline below 0.6085, the quote needs validation from the yearly low marked in July, around 0.6060, before challenging the 0.6000 psychological magnet.

NZD/USD: Four-hour chart

Trend: Limited recovery expected

This article was originally published by Fxstreet.com.Read the original article here.


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