NZD/USD Price Analysis: Bulls running out of steam above 0.6400
- NZD/USD begins the key week without much noise, grinds higher after eight-week uptrend.
- Overbought RSI conditions, six-month-old horizontal resistance challenge further advances.
- Ascending trend line from early November, previous resistance from June limit downside.
NZD/USD stays defensive above 0.6400 as traders begin the bumper week, after the bull’s dominance in the last eight consecutive weeks.
It’s worth noting, however, that the overbought conditions of the Relative Strength Index (RSI) line, placed at 14, coupled with the Kiwi pair’s repeated failures to cross the six-month-old horizontal hurdle, keep the buyers and sellers hopeful.
However, a five-week-old ascending support line, near 0.6380 by the press time, holds the key to the NZD/USD bear’s entry.
Even so, the resistance-turned-support trend line from June 03, close to 0.6290 at the latest, could restrict the Kiwi pair’s further downside.
In a case where the NZD/USD bears conquer the 0.6290 support, they can aim for September’s high surrounding 0.6160.
Alternatively, the aforementioned horizontal area comprising multiple levels marked since early June, near 0.6465-75, appears a tough nut to crack for the NZD/USD bulls. Following that, a run-up towards the mid-2022 peak surrounding 0.6575 can’t be ruled out.
Overall, NZD/USD is likely to remain inactive between 0.6465 and 0.6380. However, the pair’s further upside appears less likely.
NZD/USD: Daily chart
Trend: Limited upside expected