Nzdusd Likely To Retest Multi Month Highs

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Nzdusd Likely To Retest Multi Month Highs

NZD/USD Likely To Retest Multi-Month Highs Near 0.6300

It is the 5th day in a row that the NZD/USD continues to print green as the US Dollar remains weak. For now, the NZD/USD can be seen near 0.6220, which is already a bullish level if we look at the pair's recent price action.

The investors of NZD/USD will closely look at the upcoming PMI data to gauge the health of the US services & manufacturing sector. However, let's not forget that even bullish retail sales and a decreased initial jobless claims failed to support the USD.

Bullish Kiwi PMI Sends The NZD/USD Higher

Another important piece of data was the Kiwi PMI, which showed a jump from 42.5 to 46.7 in November. So that's also a factor that supports a bullish New Zealand Dollar (NZD).

On the NZD/USD chart, the RSI can be seen above the mid-point (50), which is a sign that bullish pressure is still dominant. This means the NZD/USD will likely retest the 0.6249 - 0.6250 resistance zone in the near term.

If the pair manages to break this level filled with sellers, the next stop for the NZD/USD bulls will be 0.6300.

In the event that the NZD/USD currency pair breaks through its current resistance level, there's a potential for it to gain sufficient momentum to approach and possibly stabilize around the key psychological threshold of 0.6300.

Additionally, the MACD indicator on the NZD/USD chart also shows that the buying pressure is still alive. Conversely, there are no technical readings that point to the strength of the US dollar in the short term.

An alternate scenario is that the NZD/USD fails to hold the 0.6200 support zone, which will send it lower toward the 23.6% fib retracement level at 0.6165.

Next up is the 0.6150, which will prove to be a resting point for the NZD/USD bulls. This level is of significant importance as it also coincides with the 14-EMA, which is currently hovering near 0.6149.

However, the technical and fundamental readings suggest that the NZD/USD has a greater chance of moving higher as opposed to the downside.

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