- NZDUSD stages a V-shaped recovery from 2024 low
- The pair jumps above 200-day SMA to its highest since June 14
- Oscillators improve notably, suggesting increasing bullish bias
NZDUSD has been steadily regaining ground since the beginning of the month after finding its footing at a fresh 2024 low of 0.5848. In the near term, the pair sliced through its 200-day simple moving average (SMA) to post a fresh two-month high on Wednesday.
Should the recovery extend further, immediate resistance could be found at 0.6170, which is the 61.8% Fibonacci retracement of the 0.6368-0.5851 downleg. Conquering this barricade, the bulls may attack the June peak of 0.6220. Even higher, the 78.6% Fibo of 0.6257 may curb further upside attempts.
Alternatively, bearish actions could send the pair lower towards the 50.0% Fibo of 0.6109. A violation of that zone could set the stage for the 38.2% Fibo of 0.6048, which held strong both in January and June. Sliding beneath that floor, the price may then test the 23.6% Fibo of 0.5972.
Overall, NZDUSD’s rebound seems to be gaining steam, while the break above the 200-day SMA has further improved the technical picture. Moving forward, a test of the June peak of 0.6220 might be the next turning point for the pair.
