NZD/USD Price Analysis: Bottoms around 0.6150 and reclaims 0.6200, refreshing weekly highs

• NZD/USD appears to have bottomed after seesawing around 0.6150 for three days.
• Despite trading in the green, the NZD/USD daily chart shows oscillators and moving averages tilted to the downside.
• The NZD/USD is neutral-upwards and might retest the 0.6300 figure if it conquers 0.6260; otherwise, a fall towards 0.6100 is on the cards.

The NZD/USD rose to fresh weekly highs around 0.6251 on Thursday, spurred by broad US dollar weakness courtesy of a fall in US T-bond yields, ahead of Powell’s keynote on Friday at the Jackson Hole Symposium. At the time of writing, the NZD/USD is trading at 0.6223, above its opening price by 0.63%.

Wall Street finished with solid gains, reflecting an upbeat mood. Nevertheless, trading liquidity conditions remained thin as investors prepared for other Fed policymakers’ remarks.

NZD/USD Price Analysis: Technical outlook

The NZD/USD edged higher during the day, briefly piercing the 50-day EMA at 0.6248 but retraced towards current exchange rates. Even though the NZD/USD trades positive in the week, moving averages above the price action, with a downward slope, suggest the opposite, further reinforced by the RSI in negative territory.

Short term, the NZD/USD 4-hour scale illustrates the major bottoming around the 0.6160 area, though as of writing, the major is trading below August’s 23 daily high at 0.6264. A breach of the latter is needed so the pair can retest the figure at 0.6300. Once cleared, the next resistance area will be the August 16 swing high at 0.6383. On the other side, the NZD/USD first support would be the 20-day EMA at 0.6197, below the 0.6200 figure. Break below will expose the August 22 daily low at 0.6156, followed by the psychological 0.6100.

NZD/USD Key Technical Levels