NZDUSD is creeping sideways along the 0.7100 level, which happens to be surrounded by the 100- and 200-day simple moving averages (SMAs) at 0.7070 and 0.7120 respectively, after its latest rally ran out of steam. Judging from the SMAs, they are mostly promoting a neutral price development.

The short-term oscillators appear fairly flat and are signalling weak and mixed signals in directional momentum. The MACD has flattened towards its red trigger line in the positive area, while the RSI is trying to improve in bullish territory. The stochastic oscillator is static with its %K line marginally below its %D line, endorsing no clear price direction in the pair for now.

In a positive scenario, preliminary upside obstructions could come from the 200-day SMA at 0.7120 ahead of the resistance band of 0.7150-0.7169. Piloting higher, the upper Bollinger band coupled with the 0.7239 border, being the 23.6% Fibonacci retracement level of the up leg from 0.6510-0.7464, could delay the test of the 0.7286-0.7315 near-term ceiling, an area involving peaks from early March, April and May.

Alternatively, sellers may struggle to break below the immediate 38.2% Fibo of 0.7098 and the nearby 100-day SMA at 0.7070. However, should this play out, a neighbouring zone of support could develop between 0.7043 until the 50-day SMA at 0.7003, which also encapsulates the mid-Bollinger band. Declining further, the price may meet the 0.6932 low before targeting the 61.8% Fibo of 0.6876. From here, if sellers remain in the driver’s seat, the lower Bollinger band at 0.6834 may come into focus prior to the key 9-month trough of 0.6803.

Summarizing, NZDUSD’s directional forces seem to have temporarily dried up as the price is stuck between the 100- and 200-day SMAs. Nevertheless, a break above the 0.7150-0.7169 barrier or beneath the 50-day SMA at 0.7003 could produce a new price course.


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

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis

Latest Forex Analysis

Editors’ Picks

EUR/USD holds above 1.1700 but the upside is limited

The EUR/USD pair flirted with 1.1750 but was unable to retain its modest intraday gains. Now trading in the 1.1720 price zone, bears retain control ahead of the US central bank monetary policy decision.


GBP/USD: Pressure mounts ahead of central banks’ announcements

The Fed and the BoE will make announcements this week. UK public inflation expectations are up for this year and the upcoming ones. GBP/USD is technically bearish in the near term, poised to retest August monthly low.


Gold: Further advances depend on the Fed

A better market mood put pressure on the American currency. The US Federal Reserve will announce its monetary policy decision on Wednesday. Gold advanced for a second day in a row, but additional gains are in doubt.

Gold News

Shiba Inu bulls can't hold SHIB from dropping to $0.000006

Shiba Inu price has fallen -28% over the past four trading sessions. Bears remain in control as bulls fail to complete a breakout above $0.000008. Bulls must hold $0.000007 to prevent a drop towards $0.000006.

Read more

Fed Preview: Three ways in which Powell could down the dollar, and none is the dot-plot

No taper now, but when? That is the main question for the Fed in its all-important September meeting. The bank buys $120B worth of bonds every month and it is set to reduce the pace at some point – the first step toward raising interest rates. 

Read more