Technical analysis – NZD/USD struggles to advance, drifts sideways

NZDUSD’s current course seems set to sail east as the pair’s appreciation appears to have become paralyzed. Nevertheless, enhancing positive signals are present from the gradual incline in the 100- and 200-day simple moving averages (SMAs), in addition to a recent bullish crossover of the 200-day SMA by the rocketing 50-day one.

That said, the delayed positive picture is also highlighted in the short-term oscillators. The MACD, some distance in the positive region, has marginally dipped below its red signal line, while the RSI is rising under weak backing in bullish territory. A glance at the stochastic oscillator indicates some weakening in its negative bearing, implying that traders need to be aware of a possible pickup in positive momentum.

Should buying interest intensify, early tough limitations to upside moves may develop at the 0.6600 handle - a 5½-month high coupled with the upper Bollinger band - and nearby resistance section between 0.6628 - 0.6664. Overrunning these obstacles, the price may home-in on the 0.6754 and 0.6789 tops achieved in December and July of 2019. Further gains may turn the medium-to-longer term bias bullish, as the price shoots towards the 0.6940 peak from February 2019.

If sellers resurface, immediate support may occur at the mid-Bollinger band at 0.6500 ahead of the lower band residing at the 0.6378 lows. Slipping under these key troughs, the 0.6333 fortified border, that being the 23.6% Fibonacci retracement of the up leg from 0.5468 to 0.6600, may attempt to terminate the decline. Diving under the bullish crossover between the 200- and 50-day SMAs located at the 23.6% Fibo, the pair may target the 0.6239 support and 100-day SMA at 0.6188, just above the 38.2% Fibo of 0.6167.

In brief, the short-term bullish mode is still intact above 0.6378 and the SMAs.