Technical Analysis – NZDUSD in consolidation mode; Bearish crossover recorded recently
|NZDUSD has been mostly moving within a narrow range over the last five trading days (between 0.6950 and 0.7050). This neutral tone is also projected by the RSI indicator which is currently at 50 and has remained in this 50 area throughout this period of consolidation.
However, the bearish cross recently recorded with the 50-day moving average (MA) crossing below the 200-day one could indicate that we’re about to enter a period of downward movement for the pair.
On the upside, the 50-day MA at 0.7062 and the 38.2% Fibonacci retracement mark at 0.7068 (of the November 8 – December 23 downleg) are expected to act as an immediate resistance area. The next key resistance level is the 200-day MA at 0.7083.
On the downside, the 23.6% Fibonacci retracement at 0.6989 will likely act as a support level. This is in close proximity to the price at the time of writing (at 0.6999) and a successful daily close below this point will bring into scope the December 23 6 ½-month low of 0.6861.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.