• NZD/USD struggles to extend the previous day’s pullback from a five-week high.
• Bearish candlestick, failure to cross 50-DMA keeps sellers hopeful.
• Sellers have a bumpy road to the south unless breaking 0.5680.

NZD/USD stays defensive above 0.5800, taking rounds to 0.5830 during Friday’s Asian session, following a pullback from the monthly top. In doing so, the Kiwi pair struggle to justify the previous day’s bearish Doji candlestick, as well as a failure to cross the 50-DMA hurdle.

It should be noted, however, that a steady rise in the RSI (14) without being near the overbought territory, suggests that the sellers have a tough fight ahead.

That said, a two-week-old ascending trend line and the previous resistance line from August 12, respectively near 0.5720 and 0.5700, could challenge short-term NZD/USD bears.

Following that, the 21-DMA level of 0.5682 could act as the last defense of the buyers, a break of which might not hesitate to challenge the yearly low marked earlier in the month around 0.5510.

Meanwhile, a daily closing beyond the 50-DMA hurdle surrounding 0.5870, appears necessary for the NZD/USD buyer’s return.

The following run-up can face a tough time as the 0.5900 threshold and the 0.6000 psychological magnet will be strong hurdles.

In a case where NZD/USD rises past 0.6000, September’s peak near 0.6165 will be in focus.

NZD/USD: Daily chart

Trend: Pullback expected