NZD/USD remains neutral above 0.71 [Video]

Melina Deltas, CFTe XM

NZDUSD has been in a sideways move over the last two months with upper boundary the 0.7313 resistance and lower boundary the 0.7100 handle. The price is trading near the aforementioned level, falling beneath the bearish cross within the 20- and 40-day simple moving averages (SMAs). The RSI indicator is diving in the negative territory as well as the MACD oscillator, while the stochastic dropped in the oversold zone.

If the price falls below 0.7100, the 200-day SMA will be approached around 0.7035, ahead of the 23.6% Fibonacci retracement mark of the up leg from 0.5470 to 0.7463 around 0.6995. Before meeting the 0.6800 psychological level, the 0.6940 barrier could gain attention underneath these hurdles.

A break above the short-term SMAs, might send the market to the upper boundary at 0.7313 before accelerating to the three-and-a-half-year high of 0.7463 and the 0.7557 barrier, which was set in July 2017.

To summarize, NZDUSD is currently neutral in the short term, with a risk of becoming bearish if the price falls below the 200-day SMA. Otherwise, a move over 0.7463 would confirm the bullish outlook in the medium term.

Author

Melina Deltas, CFTe

Melina joined XM in December 2017 as an Investment Analyst in the Research department. She can clearly communicate market action, particularly technical and chart pattern setups.

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