NZDUSD neutral with resistance at 50-day moving average

NZDUSD reversed higher after moving out of the falling channel that it was in from March 21 until April 12. The market made a recovery back above the key 0.7000 level. This level is now acting as support. Meanwhile, there is resistance at the 50-day moving average around 0.7040 which has been preventing a daily close above it in the past three days.

The failure of the RSI to continue its rise after moving from bearish territory through 50 into bullish territory, suggests that the recent upside momentum in NZDUSD has faded in the short term. Immediate resistance is at 0.7040 (50-day MA) which has been capping upside moves so far this week.

Failure to close above the 50-day MA in the next few days may signal a shift back down is probable since this moving average is sloping down. This is a bearish signal. The longer-term technical indicators are pointing to a bearish bias. The market remains below the 200-day moving average and the MACD is below zero, which is reflecting a bearish bias.

NZDUSD will remain neutral to bearish in the short term unless there is a sustained rise above 0.7132 (200-day MA) resistance). Such a move would shift the bias to a more bullish one.


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