NZD/USD Price Analysis: 50-HMA limits the correction from 20-months tops

• NZD/USD hits fresh 20-month highs above 0.69, then recedes.
• US dollar comeback and RBNZ comments weigh on the kiwi.
• US data and Fed Powell’s speech in focus.

NZD/USD has stalled its 50-pips retreat from 20-month highs of 0.6915 reached in early Asia, as the buyers are offered some reprieve at the 50-hourly moving average (HMA) of 0.6859.

The spot came under pressure after the US dollar picked up ground across the board, as the rising coronavirus cases offset the vaccine optimism.

Meanwhile, the latest comments from the RBNZ Chief Economist Yuong Ha kept hopes alive for negative interest next year and weighed further on the Antipodean.

A test of the horizontal 21-HMA at 0.6880 cannot be ruled out in the immediate term, as the hourly Relative Strength Index (RSI) has ticked higher and challenges the midline, looking to recapture the bullish zone.

Further up, the 0.6900 level will get tested. The bulls would then target multi-month tops of 0.6915.

Should the 50-HMA support give way, strong support at 0.6835 could be put to test, which is the confluence of the rising trendline support and upward sloping 100-HMA.

The next relevant downside target is seen at 0.6809, the November 11 low.

NZD/USD: Hourly chart

NZD/USD: Additional levels