Technical Analysis – NZDUSD extends gains near 3-week high but bearish outlook still holds
September 20, 2018 9:26 am
NZDUSD has been edging higher over the last three days, heading above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart. The price reached a new three-week high of 0.6662 earlier in the day, while the technical indicators are confirming the recent bullish bias in the short term. The RSI indicator entered the overbought zone, surpassing 70 level with strong momentum and the MACD oscillator is strengthening its positive movement above trigger and zero lines.
Should the price decisively close above the roof of the 0.6670 resistance barrier, taken from the lows on August 27, bulls could extend the upside correction mode towards the 23.6% Fibonacci retracement level of the downleg from 0.7390 to 0.6500, near 0.6710. Further advances above this level, could then target the area around 0.6725, which had successfully halted upside movements during the aforementioned month as well.
On the other side, a bounce off the 0.6670 barrier could drive the pair lower until the 0.6615 support level. In case of a bearish movement below this level, the price could retest the 20- and then the 40-SMAs at 0.6595 and at 0.6570.
In the medium-term, NZDUSD has been trading bearish in the past five months after the pullback on the 0.7390 hurdle, but if the price jumps above 0.6725, this could shift the outlook to more neutral to bullish one.
NZDUSD has been edging higher over the last three days, heading above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart. The price reached a new three-week high of 0.6662 earlier in the day, while the technical indicators are confirming the recent bullish bias in the short term. The RSI indicator entered the overbought zone, surpassing 70 level with strong momentum and the MACD oscillator is strengthening its positive movement above trigger and zero lines.
Should the price decisively close above the roof of the 0.6670 resistance barrier, taken from the lows on August 27, bulls could extend the upside correction mode towards the 23.6% Fibonacci retracement level of the downleg from 0.7390 to 0.6500, near 0.6710. Further advances above this level, could then target the area around 0.6725, which had successfully halted upside movements during the aforementioned month as well.
On the other side, a bounce off the 0.6670 barrier could drive the pair lower until the 0.6615 support level. In case of a bearish movement below this level, the price could retest the 20- and then the 40-SMAs at 0.6595 and at 0.6570.
In the medium-term, NZDUSD has been trading bearish in the past five months after the pullback on the 0.7390 hurdle, but if the price jumps above 0.6725, this could shift the outlook to more neutral to bullish one.
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