#NZDUSD @ 0.60930 approaches short-term key hurdle after rising the most in two months the previous day., @nehcap view: Further upside expected (Pivot Orderbook analysis)

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• NZD/USD approaches short-term key hurdle after rising the most in two months the previous day.
• 12-day-old horizontal resistance zone, descending trend line from early May challenge Kiwi bulls before 200-SMA.
• Sellers may wait for weekly support break for fresh entry.
• China’s CPI, PPI for May can join upbeat RSI to favor bulls ahead of next week’s Fed meeting.

The pair currently trades last at 0.60930.

The previous day high was 0.6097 while the previous day low was 0.6031. The daily 38.2% Fib levels comes at 0.6056, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6072, expected to provide support.

NZD/USD bulls are yet to retake control, despite the most in two months the previous day, as multiple key upside hurdles stand tall to challenge the latest advances ahead of the key China inflation data on early Friday. With this, the Kiwi pair dribbles around 0.6100 by the press time.

It should be noted that the quote’s sustained trading beyond the one-week-old ascending support line and upbeat RSI (14) line, not overbought, keeps the buyers hopeful.

However, a fortnight-long horizontal resistance area, which also comprises the 100-SMA hurdle, restricts the immediate upside of the NZD/USD pair around 0.6110-15.

Following that, a one-month-old descending trend line, close to 0.6135 by the press time, could challenge the Kiwi buyers ahead of directing them to the 200-SMA resistance of around 0.6180 at the latest.

In a case where the NZD/USD remains firmer past 0.6180, the odds of witnessing a rally beyond 0.6200 can’t be ruled out.

On the contrary, the aforementioned one-week-old rising trend line, near 0.6050 at the latest, restricts the immediate downside of the NZD/USD pair.

Even if the pair breaks the 0.6050 support, an area comprising multiple levels marked since May 26, surrounding .6025-30, can act as the last defense of the NZD/USD bulls.

Overall, the NZD/USD bulls are up for retaking control but they need validation from the 200-SMA and China’s inflation gauges for May, namely the Consumer Price Index (CPI) and Producer Price Index (PPI).

Trend: Further upside expected

Technical Levels: Supports and Resistances

NZDUSD currently trading at 0.6095 at the time of writing. Pair opened at 0.6037 and is trading with a change of 0.96% % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.6138, 50 SMA 0.6194, 100 SMA @ 0.624 and 200 SMA @ 0.6149.

The previous day high was 0.6097 while the previous day low was 0.6031. The daily 38.2% Fib levels comes at 0.6056, expected to provide support. Similarly, the daily 61.8% fib level is at 0.6072, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6013, 0.5989, 0.5947
• Pivot resistance is noted at 0.6079, 0.6121, 0.6145

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