NZD/USD has seen a 4.4% recovery from its mid-May 0.6217 lows. Nonetheless, this remains corrective unless the pair can sustain its gain over a 0.6713, 0.6821 resistance threshold, Benjamin Wong, Strategist at DBS bank reports.
Kiwi is not over the 0.6713 and 0.6821 thresholds to exactly call it bullish
“The technical indicator is moving towards an oversold pasture, but there remain impediments at 200-WMA (weekly moving average) of 0.6713 and 40-WMA of 0.6821. Prices must pop over these levels to have a sustainable bull.”
“So far, NZD has rebounded from 0.6217 lows to a 0.6492 high, but it has not scaled over a former price leg, early May highs at 0.6568, or a Starc Band resistance at 0.6552. Just above is 50-DMA at 0.6666.”
“The 4.4% rally off 0.6217 lows start to show up on the technical indicator Relative Strength Index as closer to achieving correction – this could imply NZD’s strength from 0.6217 remains corrective within the broader weakness landscape.”
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