• NZD/USD bulls take a breather after bouncing off two-year low.
• Fortnight-old trend line breakout favors buyers to poke 10-DMA hurdle, MACD, RSI signal further rebound.
• Downward sloping support line from May could lure bears on marking fresh multi-day low.

NZD/USD struggles to extend the biggest daily rebound in two weeks, fading the bounce off a two-year low while retreating to 0.6075 during the initial Asian session on Thursday. Even so, the Kiwi pair defends the previous day’s break out of a fortnight-old resistance line while retreating from the 10-DMA.

Given the receding bearish bias of the MACD and the gradually improving RSI, the latest NZD/USD rebound from the multi-day low is likely to overcome the immediate hurdle, namely the 10-DMA level surrounding the 0.6100.

However, the late August low near 0.6155-60 could challenge the pair buyers afterward, a break of which will direct the bulls towards the August 25 swing high near 0.6255.

It’s worth noting that the NZD/USD run-up beyond 0.6255 will enable the Kiwi pair buyers to aim for the previous monthly high around 0.6470.

Alternatively, a downside break of the previous resistance line, around 0.6060 by the press time, won’t hesitate to drag the quote back to the 0.6000 threshold. Also acting as a downside filter is the latest low of 0.5996.

In a case where the NZD/USD prices drop below 0.5996, May 2020 low and a four-month-old descending support line near 0.5920-15 appears the strong support to watch.

NZD/USD: Daily chart

Trend: Further recovery expected