NZD/USD Price Analysis: Bears flirting with ascending trend-line/50-hour SMA confluence support
|- NZD/USD edged lower on Monday, albeit showed some resilience at lower levels.
- Mixed technical set-up warrants some caution before placing fresh directional bets.
The NZD/USD pair traded with a mild negative bias through the early North-American session, albeit the intraday downtick showed some resilience below the 50-hour SMA, which coincides with one-week-old ascending trend-line.
A decisive break through the mentioned confluence support might be seen as a fresh trigger for bearish traders. Some follow-through weakness below the 0.6060 horizontal level will reinforce the negative outlook and prompt some fresh selling.
The pair then might accelerate the fall further towards the 0.6030-25 intermediate support en-route the key 0.60 psychological mark before bears eventually aim towards testing the 200-hour SMA support near the 0.5975 region.
Meanwhile, technical indicators on the 1-hourly chart are still holding in the bullish territory. Moreover, oscillators on the daily chart have just started gaining positive traction and support prospects for the emergence of some dip-buying.
Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent strong recovery from 11-year lows might have already run out of steam and positioning for any further near-term downfall.
NZD/USD 1-hourly chart
Technical levels to watch
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