Technical Analysis – NZDUSD falls to fresh 5-month low
April 19, 2024 11:27 am
NZDUSD creates lower lows in medium-term
Stochastics indicate oversold market
NZDUSD is recovering somewhat after it posted a new five-month low of 0.5850. The market is still in a strong descending tendency with the technical oscillators showing some mixed signs. The RSI is pointing slightly down beneath the 50 level, while the stochastic posted a bullish crossover within its %K and %D lines in the oversold area.
If there is an extension to the downside and a break beneath the 0.5858 barrier, then the next support to look for is the 0.5770 barricade, taken from the troughs on October 26.
In the positive scenario, a rally above the 0.5940 inside swing low may push the price towards the 20-day simple moving average (SMA) at 0.5970. If buying interest persists, the pair could revisit the 200- and the 50-day SMAs at 0.6050 and 0.6060 respectively before breaking the descending trend line to the upside and challenging the 0.6105 resistance.
To sum up, NZDUSD has been creating lower lows and lower highs since the end of December but any bullish corrections should not be excluded.
NZDUSD creates lower lows in medium-term
Stochastics indicate oversold market
NZDUSD is recovering somewhat after it posted a new five-month low of 0.5850. The market is still in a strong descending tendency with the technical oscillators showing some mixed signs. The RSI is pointing slightly down beneath the 50 level, while the stochastic posted a bullish crossover within its %K and %D lines in the oversold area.
If there is an extension to the downside and a break beneath the 0.5858 barrier, then the next support to look for is the 0.5770 barricade, taken from the troughs on October 26.
In the positive scenario, a rally above the 0.5940 inside swing low may push the price towards the 20-day simple moving average (SMA) at 0.5970. If buying interest persists, the pair could revisit the 200- and the 50-day SMAs at 0.6050 and 0.6060 respectively before breaking the descending trend line to the upside and challenging the 0.6105 resistance.
To sum up, NZDUSD has been creating lower lows and lower highs since the end of December but any bullish corrections should not be excluded.
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