Forex world

November 16, 2022

NZDUSD pullback from 200-day EMA

- NZDUSD retreats from 11-week high, seesaws around a downward sloping resistance line from April.

- Overbought RSI keeps sellers hopeful of retesting 100-day EMA.

- Buyers need validation from May’s low to renew multi-day top.

NZDUSD holds onto the bearish bias around the intraday low of 0.6131 during the mid-Asian session on Wednesday, after reversing from the highest levels since late August.

Tuesday’s pullback of the Kiwi pair from a multi-day top could be linked to its inability to cross the 200-day EMA, as well as the overbought conditions of the RSI (14) line.

Even so, the NZDUSD remains mostly sidelined near the key resistance line from April, now support around 0.6140.

Should the quote stays bearish below 0.6140, the odds of witnessing a slump toward the 100-day EMA level surrounding the 0.6000 psychological magnet can’t be ruled out.

However, a one-month-old ascending support line near 0.5870 could challenge the NZDUSD sellers afterward.

Also acting as a downside filter is the early October swing high near 0.5815, a break of which could quickly drag the quote toward the yearly low near 0.5510.

On the flip side, a daily closing beyond the 200-day EMA level surrounding 0.6210 needs validation from the May month’s low near 0.6220 to keep NZDUSD buyers on the board.

Following that, the bulls could aim for the August 2022 peak near 0.6470.

Trend: Limited downside expected

NZDUSD: Daily chart

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