Technical Analysis – NZDUSD still positive for an upside break
July 11, 2023 3:27 pm
NZDUSD has been on the sidelines over the past week, consolidating its latest upturn around the 0.6200 level ahead of the RBNZ policy meeting due on Wednesday at 02:00 GMT.
Despite the weak momentum in the price, the RSI and the MACD are still hovering within the bullish area, preserving hopes for an upside correction.
If the simple moving averages (SMAs) keep a strong footing under the price, the bulls might pierce through the 0.6200 wall to revisit the descending trendline from April at 0.6270. The 0.6340-0.6380 zone, which includes the broken support trendline from September and the February-May highs, will be closely watched too. A decisive close higher could then lift the price up to January’s top of 0.6536. Strikingly, the strong resistance trendline drawn from the 2021 peak is located in the same neighborhood.
On the downside, the 0.6180-0.6145 zone has been balancing selling forces for a couple of sessions. If the bears cross that floor, the price could tumble towards the tentative short-term ascending trendline at 0.6080. An extension below the swing low of 0.6050 could initially examine the 0.6000 psychological mark before speeding up towards the tentative descending line at 0.5935.
In summary, NZDUSD might have some bullish fuel in the tank, though only a clear move above 0.6200 could activate new buying orders.
NZDUSD has been on the sidelines over the past week, consolidating its latest upturn around the 0.6200 level ahead of the RBNZ policy meeting due on Wednesday at 02:00 GMT.
Despite the weak momentum in the price, the RSI and the MACD are still hovering within the bullish area, preserving hopes for an upside correction.
If the simple moving averages (SMAs) keep a strong footing under the price, the bulls might pierce through the 0.6200 wall to revisit the descending trendline from April at 0.6270. The 0.6340-0.6380 zone, which includes the broken support trendline from September and the February-May highs, will be closely watched too. A decisive close higher could then lift the price up to January’s top of 0.6536. Strikingly, the strong resistance trendline drawn from the 2021 peak is located in the same neighborhood.
On the downside, the 0.6180-0.6145 zone has been balancing selling forces for a couple of sessions. If the bears cross that floor, the price could tumble towards the tentative short-term ascending trendline at 0.6080. An extension below the swing low of 0.6050 could initially examine the 0.6000 psychological mark before speeding up towards the tentative descending line at 0.5935.
In summary, NZDUSD might have some bullish fuel in the tank, though only a clear move above 0.6200 could activate new buying orders.
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