NZD/USD picks up bids to extend week-start rebound from short-term support line.
MACD conditions, 200-day EMA prod Kiwi pair buyers.
23.6% Fibonacci retracement level adds strength to 0.6190 immediate support.
NZD/USD renews intraday high around 0.6250 to stretch the previous day’s recovery amid early Tuesday’s Asian session. In doing so, the Kiwi pair cheers the US Dollar weakness ahead of China’s Retail Sales and Industrial Production for April, as well as the US Retail Sales for the said month. Also important are the US debt ceiling talks, scheduled for 19:00 GMT on Tuesday.
Also read: NZD/USD bulls in the market and eye a firm correction
However, the impending bear cross on the MACD and the 200-day Exponential Moving Average (EMA) challenges the NZD/USD pair’s immediate upside near 0.6255.
Following that, the 50% and 61.8% Fibonacci retracement of the Kiwi pair’s February-March fall, respectively near 0.6310 and 0.6365, will challenge the pair buyers.
Even if the NZD/USD bulls manage to cross the 0.6365 hurdle, a horizontal area comprising multiple hurdles marked since early February, near 0.6385-95, will be a tough nut to crack for them.
On the flip side, a convergence of an upward-sloping trend line from April 26 and 23.6% Fibonacci retracement highlights the 0.6190 as short-term key support.
Should the NZD/USD bears keep the reins past 0.6190, the previous monthly low of around 0.6110 may offer an intermediate halt before directing the bears toward the yearly bottom marked in March around 0.6085.
NZD/USD: Daily chart
Trend: Further recovery expected