NZD/USD starts sideways move in descending channel [Video]

Melina Deltas, CFTe XM

NZDUSD has embarked itself on a new bearish-to-neutral phase after the bulls got defeated once again near the tough resistance of 0.6980 and the short-term simple moving averages (SMAs).

The momentum indicators are currently flagging that the sell-off may came to an end for the near-term timeframe. With the MACD accelerating above its trigger line and above its zero line, and the RSI sailing northwards below its 50 neutral mark, upside corrections are more likely than downside ones.

In the event of an upside reversal, the price will push for a close above the 0.6800 level, where the 200-day simple moving average (SMA) is laying at 0.7100 around the falling trend line. Slightly higher, the 0.7165 barrier could add optimism for a bullish trending market.

The negative structure could meet support at the 0.6857 barrier ahead of the 0.6800 psychological mark. Any drops lower could open the way for a retest of the support line of the descending channel around 0.6750.

All in all, NZDUSD is expected to stay in the bearish phase in the long-term, likely facing some constraints around 0.6980 and 0.6857.

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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