Technical Analysis – NZDUSD continues the strong selling interest near 0.6100
- NZDUSD decreases more than 4% from 0.6370
- Price posts the 6th straight red day
- Stochastics and RSI suggest some upside retracement
NZDUSD slipped towards the 0.6100 area, raising worries that the pullback from the 15-month high of 0.6370 could gain more legs. The pair has been losing more than 4% over the last six trading sessions, with immediate support coming from the 200-day simple moving average (SMA) at 0.6095.
Any additional declines could remain attractive to traders with the next support level coming from the 0.5975 barrier. If that bearish scenario unfolds, the pair could tumble towards the 0.5850-0.5875 region.
Should the bulls return, they will first push for a close above the 50-day SMA at 0.6155. Then, they would fight for a breakout above the 20-day SMA at 0.6230 and the short-term rising trend line at 0.6270. The 15-month top of 0.6370 could be the next destination.
Technically, a rebound in the price cannot be excluded as the stochastic is creating a bullish crossover in the oversold area, while the RSI is moving horizontally below the 50 level after a steep fall.
In brief, NZDUSD is negative in the short-term view but as long as it trades above the 200-day SMA, buying the dip could be a favorable play.
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
