Technical Analysis – NZDUSD challenges 50% Fibonacci after upward spike
September 29, 2023 1:28 pm
NZDUSD marches higher, surpassing the 50-day SMA
Battles with 50.0% Fibonacci retracement of the 0.5510-0.6535 upleg
Momentum indicators tilt aggressively to the bullish side
NZDUSD had been stuck in a downtrend after posting a five-month high of 0.6410 in mid-July, which ceased at a fresh nine-month low on September 5. Since then, the pair has been steadily gaining ground, with the short-term oscillators endorsing this latest advance.
Should buying interest intensify further and the pair closes profoundly above the 50.0% Fibo of 0.6023, immediate resistance could be found at the 38.2% Fibo of 0.6144. Failing to halt there, the price might then ascend towards the 23.6% Fibo of 0.6294. Further advances could then come to a halt at the five-month peak of 0.6410.
Alternatively, bearish actions could send the price to test the 61.8% Fibo of 0.5902. Diving below that territory, the pair could slide towards the nine-month low of 0.5858. A violation of that region could open the door for the 78.6% Fibo of 0.5730.
Overall, NZDUSD is showing signs of life after a period of directionless trading. However, the bulls should not get excited until the price clearly claims the 50.0% Fibo of 0.6023
NZDUSD marches higher, surpassing the 50-day SMA
Battles with 50.0% Fibonacci retracement of the 0.5510-0.6535 upleg
Momentum indicators tilt aggressively to the bullish side
NZDUSD had been stuck in a downtrend after posting a five-month high of 0.6410 in mid-July, which ceased at a fresh nine-month low on September 5. Since then, the pair has been steadily gaining ground, with the short-term oscillators endorsing this latest advance.
Should buying interest intensify further and the pair closes profoundly above the 50.0% Fibo of 0.6023, immediate resistance could be found at the 38.2% Fibo of 0.6144. Failing to halt there, the price might then ascend towards the 23.6% Fibo of 0.6294. Further advances could then come to a halt at the five-month peak of 0.6410.
Alternatively, bearish actions could send the price to test the 61.8% Fibo of 0.5902. Diving below that territory, the pair could slide towards the nine-month low of 0.5858. A violation of that region could open the door for the 78.6% Fibo of 0.5730.
Overall, NZDUSD is showing signs of life after a period of directionless trading. However, the bulls should not get excited until the price clearly claims the 50.0% Fibo of 0.6023
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