NZD/USD Price Analysis: Crosses monthly resistance but bulls stay cautious below 0.6230

• NZD/USD prints three-day uptrend on firmer New Zealand inflation data.
• MACD prints the strongest bullish signals in five weeks to keep buyers hopeful.
• Sustained break of 10-DMA, descending trend line from mid-June also favor upside momentum.
• Sellers need validation from 0.6100 to retake control.

NZD/USD begins the trading week on a positive note, backed by upbeat New Zealand Q2 Consumer Price Index (CPI) data, as the bulls attack 0.6200 during Monday’s Asian session.

In doing so, the Kiwi pair pierces a downward sloping resistance line from June 16, now support around 0.6175, while also justifying sustained trading beyond the 10-DMA. Additionally, MACD signals the strongest bullish histogram since early June, which in turn hints at the pair’s further advances.

However, multiple levels marked since May 12 join the 21-DMA to highlight 0.6220-30 area as the key hurdle for the NZD/USD bulls.

Following that, the monthly high surrounding 0.6255 may entertain the pair buyers before directing them to the June 16 high close to 0.6400.

Meanwhile, the resistance-turned-support line and the 10-DMA, respectively around 0.6175 and 0.6150, may test NZD/USD sellers.

Even if the quote drops below 0.6150, multiple levels marked since early July could restrict the short-term downside to around 0.6100.

It’s worth noting, however, that the NZD/USD pair’s weakness below 0.6100 won’t hesitate to challenge the 0.6000 psychological magnet. That said, the recent multi-month low near 0.6060 can offer an intermediate halt during the fall.

NZD/USD: daily chart

Trend: Limited recovery expected