NZD/USD Price Analysis: Bulls attack 20-EMA after defending weekly lows at 0.6150

• The kiwi bulls are aiming to establish above the 20-EMA at 0.6168.
• A falling wedge formation is indicating volatility contraction ahead.
• The RSI (14) has shifted into a 40.00-60.00 which indicates a halt in the downside potential for a while.

The NZD/USD pair is juggling in a narrow range of 0.6162-0.6175 in the Asian session. The kiwi bulls have turned sideways after displaying a responsive buying action. The asset has defended its weekly lows at 0.6147 and a responsive buying action near weekly lows indicates some signs of reversal.

A falling wedge formation on an hourly scale is indicating a volatility contraction on a current note. Usually, a falling wedge dictates a bullish reversal after giving an upside break of the upper portion of the chart pattern. The upper portion of the chart pattern is placed from June 16 high at 0.6396 while the lower portion is plotted from June 14 low at 0.6196.

The antipodean is aiming to establish above the 20-period Exponential Moving Average (EMA) at 0.6168. While the 50-period EMA is still trading higher at 0.6187.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into a 40.00-60.00 range, which signals that the kiwi bulls have defended the downside risks for a while.

A decisive move above Wednesday’s high at 0.6176 will drive the asset towards the round-level resistance at 0.6200, followed by June 22 low at 0.6244.

On the flip side, the greenback bulls could regain control if the major drop below Tuesday’s low at 0.6124. An occurrence of the same will drag the asset towards 25 May 2020 low at 0.6084. A violation of 0.6084 will expose the asset to more downside potential towards the psychological support of 0.6000.

NZD/USD hourly chart