Technical Analysis – NZDUSD advances after bounce off 5-month low
April 25, 2024 12:28 pm
NZDUSD remains beneath downtrend line
50- and 200-day SMAs post bearish cross
MACD and stochastics confirm upside move
NZDUSD is boosting its upside movement after the pullback off the five-month low of 0.5850. The pair is currently testing the 20-day simple moving average (SMA); however, the 50- and the 200-day SMAs are ready for a bearish crossover slightly beneath the descending trend line.
Technically, a rebound in the price cannot be excluded as the RSI is moving up to surpass the 50 level, while the stochastic is entering the overbought zone.
Should the bulls return, they will first push for a close above the 200- and the 50-day SMAs at 0.6040. Then, they will fight for an upside breakout of the downtrend line at 0.6060. If efforts prove successful, the pair may advance towards the 0.6080-0.6105 resistance area.
On the other hand, a move south could find immediate support at 0.5940 before heading again towards the previous trough of 0.5850. A new lower low could be met at the 0.5770 support level.
In brief, NZDUSD is heading for a softly positive weekly close, but as long as it trades beneath the falling trend line, selling interest could remain in play.
NZDUSD remains beneath downtrend line
50- and 200-day SMAs post bearish cross
MACD and stochastics confirm upside move
NZDUSD is boosting its upside movement after the pullback off the five-month low of 0.5850. The pair is currently testing the 20-day simple moving average (SMA); however, the 50- and the 200-day SMAs are ready for a bearish crossover slightly beneath the descending trend line.
Technically, a rebound in the price cannot be excluded as the RSI is moving up to surpass the 50 level, while the stochastic is entering the overbought zone.
Should the bulls return, they will first push for a close above the 200- and the 50-day SMAs at 0.6040. Then, they will fight for an upside breakout of the downtrend line at 0.6060. If efforts prove successful, the pair may advance towards the 0.6080-0.6105 resistance area.
On the other hand, a move south could find immediate support at 0.5940 before heading again towards the previous trough of 0.5850. A new lower low could be met at the 0.5770 support level.
In brief, NZDUSD is heading for a softly positive weekly close, but as long as it trades beneath the falling trend line, selling interest could remain in play.
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