- NZD/USD struggles to extend the heaviest daily gains in six weeks, retreats from day’s high of late.
- Five-month-old previous support challenge bullish impulse amid recovering RSI.
- 20-DMA adds to the upside bias, bears will seek fresh entry below a descending trend line from June 18.
NZD/USD eases below 0.6900, up 0.04% around 0.6895 by the press time of the pre-European session on Tuesday. The kiwi pair jumped the most since mid-June the previous day but couldn’t cross a downward sloping resistance line from March.
Even so, the RSI recovery and the pair’s sustained trading above the nine-week-long support line keeps NZD/USD buyers hopeful.
Hence, the pair bulls seek a daily closing beyond the previous support line of around 0.6910 to firm up the controls.
Following that, 20-DMA around 0.6970 and the 0.7000 psychological magnet may lure the upside moves. However, a descending resistance line from May 26 near 0.7025 could challenge the NZD/USD run-up afterward.
Alternatively, failures to cross 0.6910 on a daily closing basis could pull the quote back to the stated support line from June 18, near 0.6830.
In a case where the NZD/USD bears remain dominant past 0.6830, which is less likely considering the RSI conditions, the September 2020 tops near 0.6800 will be in focus.
NZD/USD: Daily chart
Trend: Further recovery expected