- NZD/USD remains under pressure in a bearish chart formation, resisting the previous day’s decline from a three-week high.
- While 0.6200 holds the key to further declines, 0.6100 appears to be the last line of defense for Kiwi buyers.
- A recovery for the Kiwi pair remains elusive below 0.6400, the bulls seem to be running out of breath recently.
NZD/USD it bounces off the intraday low as it looks to confirm a fortnight-old rising wedge bearish chart mid-morning in Europe on Monday. This means the Kiwi pair is licking its wounds near 0.6215 while maintaining the previous day’s retreat from the monthly high.
It is worth noting that the lower-high formation joins bearish MACD signals to attract NZD/USD sellers. However, sellers need to hold the reins for sellers to hold the reins, however, which is a clear beak of a downward rising wedge, around 0.6200 as of press time.
Even so, 200-SMA support near 0.6175 may spur bears.
In particular, the convergence of the 100-SMA and the previous resistance line has been stretching near 0.6100 since early May. A key support appears to be a breakout of NZD/USD sellers to retake control.
Meanwhile, the descending resistance line from Thursday, near 0.6240 at the latest, limits the immediate upside of the NZD/USD pair before the upper line of the said wedge, near 0.6280 at the latest.
Should the Kiwi price remain firmer above 0.6280, the possibility of meeting the previous monthly high near 0.6385 cannot be ruled out.
NZD/USD: 4-hour chart
Trend: A limited decline is expected