The NZDUSD has maintained robust support from the 200-bar moving average on the 4-hour chart, currently at 0.5707, marking the fourth successful test of this level. This repeated testing underscores its importance for traders, as a future break could have significant implications.
The price rebound has lifted NZDUSD above the 100-day moving average at approximately 0.5736, which now serves as close support. Retaining this position suggests that buyers may be regaining short-term influence.
Key Resistance Levels
However, upward momentum remains cautious until the pair surpasses the 100- and 200-hour moving averages, ranging from 0.5749 to 0.5758. A definitive break above this resistance zone would create opportunities to reach 0.5771, while traders will monitor the ability to stay above 0.5735 closely.
The persistence of the 200-bar moving average as a stronghold reflects the reluctance of sellers to push prices lower. Each test and subsequent rebound reinforce the perception that this technical reference holds weight in decision-making. If this floor eventually gives way, immediate reactions in price action could accelerate any downward move.
The recent bounce has allowed the pair to reclaim ground above the 100-day moving average, bringing into question whether bearish control has weakened. Holding above this threshold signals that buyers are asserting themselves again, at least in the shorter term. Such positioning is not just psychological; it serves as a structural base where past resistance may now act as an area that deters further retracement.
Potential Upside Targets
Despite this, buying pressure remains under scrutiny. The 100- and 200-hour moving averages still loom ahead, providing an area where selling pressure has historically emerged. For further strength to materialise, clearing this territory decisively could indicate a shift toward higher prices. A move beyond this range wouldn’t merely be a tick-box exercise but rather a point where additional participation may emerge.
If an advance unfolds, the next target nearby sits at 0.5771, where prior reactions have occurred. Still, price movement isn’t just about reaching higher figures—monitoring whether support at 0.5735 endures will be equally important. Should buyers fail to defend that level, sentiment could lean towards renewed hesitation.
With these dynamics in play, the coming sessions may present opportunities based on how these reference points interact. Momentum will depend not only on price exceeding barriers but also on whether prior supports continue to offer stability.
