NZD/USD Price Analysis: Bulls need to overstep 0.6850 decisively for a fresh impulsive wave

• NZD/USD has bounced after successfully testing the demand area in a range of 0.6800-0.6810.
• Kiwi bulls need to violate 0.6853 for a fresh rally ahead.
• The RSI (14) needs to overstep 60.00 to validate a bullish setup.

The NZD/USD pair has witnessed a firmer rally after successfully testing the demand area, which is established in a range of 0.6800-0.6810. The demand area coincides with March 2 high and March 8 low at 0.6800 along with February 23, March 3, and March 4 highs at 0.6810. The major is hovering around the 20-period Exponential Moving Average (EMA), which is trading at 0.6830.

On a four-hour scale, NZD/USD has observed significant bids after validating the demand area. For now, the major is sensing barricades near Wednesday’s high at 0.6853, which also coincides with Tuesday’s highest traded price. The 50-period and 100-period EMAs are scaling higher, currently trading at 0.6805 and 0.6770 respectively, which add to the upside filters.

The Relative Strength Index (RSI) (14) is oscillating in a range of 40.00-60.00, which signals a consolidation phase. Kiwi bulls need to push the RSI (14) above 60.00 to validate a bullish setup.

For an upside, bulls need to overstep Wednesday’s high at 0.6853, which will send the pair towards March 07 high at 0.6926. Breach of the latter will expose the major to November 23 high at 0.6988.

On the flip side, bulls can lose control if the pair slips below the lower segment of the demand area at 0.6800. This will trigger the greenback bulls and the pair may drag towards the 100 EMA at 0.6770 and March 1 low at 0.6740.

NZD/USD four-hour chart