Technical Analysis – NZDUSD range bound ahead of quarterly CPI
April 19, 2023 7:28 am
NZDUSD got another rejection near the 0.6300 round-level last week, drifting lower to retest the 200-day simple moving average (SMA) around 0.6158 ahead of New Zealand’s quarterly CPI inflation data.
The focus will remain on the downside as the RSI has returned to the bearish region, and the MACD has slipped into the negative area, both suggesting that downside corrections are more likely than upside ones.
A close below the 200-day SMA may renew selling pressures, likely driving the price straight to the March low of 0.6080. Another bearish correction here would shift the outlook back to bearish, bringing the 0.6000 psychological mark next into view. A steeper decline could halt around 0.5930.
Alternatively, traders may wait for a sustainable bullish move above the 0.6255-0.6300 zone before targeting the tough resistance of 0.6390 and the ascending line near 0.6450. Should the bulls claim this territory, the door would open for the 0.6500 number and then for the 0.6550 barrier.
All in all, NZDUSD may struggle to find a new direction unless it drops below 0.6155 or climbs above 0.6300.
NZDUSD got another rejection near the 0.6300 round-level last week, drifting lower to retest the 200-day simple moving average (SMA) around 0.6158 ahead of New Zealand’s quarterly CPI inflation data.
The focus will remain on the downside as the RSI has returned to the bearish region, and the MACD has slipped into the negative area, both suggesting that downside corrections are more likely than upside ones.
A close below the 200-day SMA may renew selling pressures, likely driving the price straight to the March low of 0.6080. Another bearish correction here would shift the outlook back to bearish, bringing the 0.6000 psychological mark next into view. A steeper decline could halt around 0.5930.
Alternatively, traders may wait for a sustainable bullish move above the 0.6255-0.6300 zone before targeting the tough resistance of 0.6390 and the ascending line near 0.6450. Should the bulls claim this territory, the door would open for the 0.6500 number and then for the 0.6550 barrier.
All in all, NZDUSD may struggle to find a new direction unless it drops below 0.6155 or climbs above 0.6300.
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