NZD/USD Price Analysis: Kiwi gives tough fight to 200-EMA

• NZD/USD has sensed marginal selling pressure around a three-day high at 0.6160.
• Investors are awaiting the release of the US ISM Manufacturing PMI data for further guidance.
• NZD/USD is approaching the downward-sloping trendline plotted from June 15 high at 0.6250.

The NZD/USD pair has faced some pressure after printing a fresh three-day high at 0.6160 in the early European session. The Kiwi asset is still possessing strength as the Caixin Manufacturing PMI data has outperformed expectations. The economic data landed at 50.5 higher than the expectations of 50.2 but remained lower than the prior release of 50.9.

It is worth noting that New Zealand is one of the leading trading partners to China and higher manufacturing activities in China support the New Zealand Dollar.

The US Dollar Index (DXY) is looking to climb above 103.00 as investors are awaiting the release of the United States ISM Manufacturing PMI data for further guidance.

NZD/USD is approaching the downward-sloping trendline plotted from June 15 high at 0.6250 on a four-hour scale. The Kiwi asset is facing barricades around the 200-period Exponential Moving Average (EMA) at 0.6150, which indicates that the long-term trend has not turned bullish yet. Horizontal resistance is placed from May 19 high at 0.6306.

The Relative Strength Index (RSI) is making efforts to shift into the bullish range of 60.00-80.00. An occurrence of the same would strengthen the New Zealand Dollar bulls.

Going forward, a decisive break above June 27 high at 0.6200 will drive the asset towards June 14 high at 0.6236 followed by May 17 high at 0.6274.

Alternatively, a downside move below June 23 low at 0.6116 will expose the asset June 05 low at 0.6041. A slippage below the latter would expose the asset to psychological support at 0.6000.

NZD/USD four-hour chart