NZDUSD inched to a four-month high of 0.7178 on Thursday following the advance above the eighth-month-old descending channel and the 200-day simple moving average (SMA) on Wednesday.

 

Although the bullish breakout still requires confirmation and a downside correction cannot be excluded, as the RSI and the Stochastics move in overbought waters, the growing momentum in the MACD suggests buying forces could dominate in the short term.

Should the bulls successfully clear September’s peak of 0.7169, the rally could initially stabilize around the 0.7245 barriers before stretching towards the 0.7315 high from May 26. If the latter gives way, the spotlight will immediately fall on the 2021 top of 0.7463, where any violation would invite long-term bulls into play, likely pushing the pair to search resistance near the 2017 peak of 0.7557.

A downside reversal would not be a big burden unless the price dips back below the channel and the 200-day SMA at 0.7095. In this case, selling forces could strengthen towards the 50-day SMA at 0.7000, while lower, some consolidation could take place around the 0.6909 support area before September’s low of 0.6857 comes under examination.

To summarize, NZDUSD is looking cautiously bullish in the short-term picture. A decisive close above 0.7169 may reduce downside risks, bringing the 0.7245 handles next into view.

NZDUSD

Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD drops towards 1.1300 as Omicron, inflation concerns weigh

EUR/USD is trading below 1.1350, consolidating the biggest daily jump in a fortnight. The US dollar rebound amid a cautious mood. Omicron, US-China woes keep investors on the edge, Rising US inflation expectations underpin the yields. US jobless claims, Omicron updates closely eyed.

EUR/USD News

GBP/USD trades with modest gains above 1.3200 mark, lacks follow-through

GBP/USD is trading flat above 1.3200, struggling to capitalize on the overnight goodish rebound from a one-year low. Fresh COVID-19 jitters pushed back BoE rate hike expectations and undermined the pound. Resurgent USD demand further stalled aggressive bullish bets.

GBP/USD News

Gold: Doji below 200-DMA teases bears, Omicron updates eyed

Gold portrays trader’s indecision below the key moving average following Wednesday’s bearish candlestick. Market sentiment dwindles as virus-linked news battles geopolitical fears. Friday’s US CPI becomes crucial as inflation expectations improve.

Gold News

Why MATIC price could soon see a meteoric rise toward the round level of $4

MATIC price appears to be ready for a major upswing toward $3.84 as Polygon presented a bullish chart pattern on the daily chart. The governing technical pattern suggests that the layer-2 token is preparing for a 62% climb.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Majors

Cryptocurrencies

Signatures