Technical analysis – NZD/USD struggles to advance, drifts sideways
|NZDUSD’s current course seems set to sail east as the pair’s appreciation appears to have become paralyzed. Nevertheless, enhancing positive signals are present from the gradual incline in the 100- and 200-day simple moving averages (SMAs), in addition to a recent bullish crossover of the 200-day SMA by the rocketing 50-day one.
That said, the delayed positive picture is also highlighted in the short-term oscillators. The MACD, some distance in the positive region, has marginally dipped below its red signal line, while the RSI is rising under weak backing in bullish territory. A glance at the stochastic oscillator indicates some weakening in its negative bearing, implying that traders need to be aware of a possible pickup in positive momentum.
Should buying interest intensify, early tough limitations to upside moves may develop at the 0.6600 handle - a 5½-month high coupled with the upper Bollinger band - and nearby resistance section between 0.6628 - 0.6664. Overrunning these obstacles, the price may home-in on the 0.6754 and 0.6789 tops achieved in December and July of 2019. Further gains may turn the medium-to-longer term bias bullish, as the price shoots towards the 0.6940 peak from February 2019.
If sellers resurface, immediate support may occur at the mid-Bollinger band at 0.6500 ahead of the lower band residing at the 0.6378 lows. Slipping under these key troughs, the 0.6333 fortified border, that being the 23.6% Fibonacci retracement of the up leg from 0.5468 to 0.6600, may attempt to terminate the decline. Diving under the bullish crossover between the 200- and 50-day SMAs located at the 23.6% Fibo, the pair may target the 0.6239 support and 100-day SMA at 0.6188, just above the 38.2% Fibo of 0.6167.
In brief, the short-term bullish mode is still intact above 0.6378 and the SMAs.
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