NZD/USD Price Analysis: Bulls await a sustained move beyond 0.6100 mark, FOMC in focus

• NZD/USD continued gaining traction for the fifth straight session on Wednesday.
• The technical set-up supports prospects for a further near-term appreciating move.

The NZD/USD pair shot to two-week tops on Wednesday, albeit seemed struggling to extend the positive momentum further beyond the 0.6100 round-figure mark. The mentioned level has been acting as a key hurdle over the past two weeks or so and coincides with the 50% Fibonacci level of the 0.6756-0.5470 steep fall.

Meanwhile, the recent price action has been confined well within an upward sloping trend channel. The coupled with the fact that the pair has already found acceptance above 50-day SMA – for the first time since the last week of January – supports prospects for an eventual breakthrough the mentioned barrier amid weaker USD.

The constructive set-up is further reinforced by bullish technical indicators on hourly/daily charts. However, it will be prudent to wait for some follow-through buying the 0.6100 mark before positioning for any further near-term appreciating move towards the 0.6200 level, marking the top end of the trend-channel.

On the flip side, any meaningful pullback below 50-day SMA, around the 0.6070-65 region, might still be seen as a buying opportunity. This, in turn, might help limit any further downside for the major. The key 0.60 psychological mark might now act as a firm base and should act as a key pivotal point for short-term traders.

NZD/USD daily chart

Technical levels to watch