NZDUSD has been mostly moving within a narrow range over the last five trading days (between 0.6950 and 0.7050). This neutral tone is also projected by the RSI indicator which is currently at 50 and has remained in this 50 area throughout this period of consolidation.
However, the bearish cross recently recorded with the 50-day moving average (MA) crossing below the 200-day one could indicate that we’re about to enter a period of downward movement for the pair.
On the upside, the 50-day MA at 0.7062 and the 38.2% Fibonacci retracement mark at 0.7068 (of the November 8 – December 23 downleg) are expected to act as an immediate resistance area. The next key resistance level is the 200-day MA at 0.7083.
On the downside, the 23.6% Fibonacci retracement at 0.6989 will likely act as a support level. This is in close proximity to the price at the time of writing (at 0.6999) and a successful daily close below this point will bring into scope the December 23 6 ½-month low of 0.6861.
Forex trading and trading in other leveraged products involves a significant level of risk and is not suitable for all investors.
Recommended Content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.