Technical Analysis: NZDUSD suggests pullback inside monthly rising wedge

Technical Analysis: NZDUSD suggests pullback inside monthly rising wedge

NZDUSD buyers attack the upper line of the short-term rising wedge bearish chart pattern on early Tuesday. It should, however, be noted that the recent US dollar recovery seems to test the kiwi buyers while RSI signals further consolidation of the monthly gains. The weekly support line near 0.7160 and 200-SMA around the 0.7100 round figure can challenge the short-term downside. However, NZDUSD bears shouldn’t expect a major drawdown until the prices stay beyond 0.7070 comprising the support line of the stated wedge.

On the contrary, an upside break of 0.7250 will defy the bearish formation but 61.8% Fibonacci retracement of February–March fall close to 0.7265 will challenge the pair’s further rise. Also acting as an upside barrier is the March month’s high of 0.7306. In a case where NZDUSD manages to cross 0.7306, odds of its rally towards the February top of 0.7463 can’t be ruled out.

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