NZD/USD Price Analysis: 50-HMA probes bounce off weekly horizontal support

• NZD/USD seesaws around intraday high amid firmer RSI.
• Sustained rebound from short-term key hurdle directs bulls toward late October top.

NZD/USD defends late Friday’s recovery moves around 0.7175 during early Monday. The kiwi pair bounced off a horizontal area comprising multiple lows since October 22 the previous day. The upside momentum also take clues from China's Caixin Manufacturing PMI for October, 50.6 versus 50.00 expected and prior.

Read: China Caixin PMI beats expecttions by 0.6, AUD supported slightly

However, 50-HMA challenges the immediate upside around 0.7175 ahead of directing the quote towards the double tops marked during late October, near 0.7220. It’s worth noting that the recently improving RSI line and the pair’s sustained recovery from short-term horizontal support favor buyers.

In a case where the NZD/USD prices rise beyond 0.7220, a theoretical run-up of around 90 pips will aim for May’s high near 0.7320.

On the flip side, the pullback move may again aim for the 0.7130 horizontal support area with the 0.7150 level acting as an intermediate halt.

During the quote’s weakness past 0.7130, October 17 peak around 0.7100 and the late September’s high near 0.7095 will challenge the NZD/USD weakness before highlighting October 17 top near 0.6985.

NZD/USD: Hourly chart

Trend: Further recovery expected