Technical Analysis – NZDUSD bulls show up before RBNZ rate announcement
April 9, 2024 4:27 pm
NZDUSD shows recovery signs ahead of RBNZ decision
Resistance near 0.6070; support at 0.6000
NZDUSD entered the week on a positive note as investors awaited to hear the RBNZ’s policy update during Wednesday’s Asian trading hours.
The pair stretched Monday’s rebound marginally above the 200-day simple moving average (SMA) to examine the 50% Fibonacci retracement of the October-December downleg at 0.6070. The area has been restricting both upside and downside movements so far this year. Hence, a victory over it is expected to add more fuel to the current bullish action, pushing the price towards the tentative resistance trendline at 0.6140. Then, if the resistance territory at 0.6175 also gives way, the door will open for the one-year-old descending trendline at 0.6215, which the bulls failed to surpass successfully in December.
The positive slope in the momentum indicators favors the bulls. However, the negative SMA crosses suggest that the downward trajectory in the market might stay intact. Should the price drift back below the 20-day SMA and the 0.6000 round level, the bears might again challenge the support line at 0.5915. A break lower could reach the lows from September and November 2023 around 0.5860.
All in all, NZDUSD remains constrained despite its latest pickup. The bulls will have to drive sustainably above 0.6215 to shift the short-term outlook back to positive.
NZDUSD shows recovery signs ahead of RBNZ decision
Resistance near 0.6070; support at 0.6000
NZDUSD entered the week on a positive note as investors awaited to hear the RBNZ’s policy update during Wednesday’s Asian trading hours.
The pair stretched Monday’s rebound marginally above the 200-day simple moving average (SMA) to examine the 50% Fibonacci retracement of the October-December downleg at 0.6070. The area has been restricting both upside and downside movements so far this year. Hence, a victory over it is expected to add more fuel to the current bullish action, pushing the price towards the tentative resistance trendline at 0.6140. Then, if the resistance territory at 0.6175 also gives way, the door will open for the one-year-old descending trendline at 0.6215, which the bulls failed to surpass successfully in December.
The positive slope in the momentum indicators favors the bulls. However, the negative SMA crosses suggest that the downward trajectory in the market might stay intact. Should the price drift back below the 20-day SMA and the 0.6000 round level, the bears might again challenge the support line at 0.5915. A break lower could reach the lows from September and November 2023 around 0.5860.
All in all, NZDUSD remains constrained despite its latest pickup. The bulls will have to drive sustainably above 0.6215 to shift the short-term outlook back to positive.
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