Technical Analysis – NZDUSD erases GDP-led pickup
NZDUSD rises temporarily after slight GDP growth surprise
Bulls remain capped below 20-SMA; key support at 0.6085-0.6095
Early Thursday data revealed that the New Zealand economy experienced slightly faster growth than anticipated in Q1. However, NZDUSD rose only a few pips to 0.6164, which were swiftly erased.
The bears couldn’t push past the 20-day SMA at 0.6145 for the fourth consecutive day, leading to worries that the pause in the short-term uptrend could lead to a downward reversal. The negative slope in the technical indicators does not dispute the negative signals, though sellers could stay patient as long as the floor at 0.6085-0.6095 stays solid.
If the bears violate the uptrend below 0.6085-0.6095, the 50- and 200-day SMAs could act as a buffer around 0.6060, preventing a sharp downfall to 0.5980-0.6000. A step lower could trigger another aggressive decline to 0.5940, where the ascending line drawn from the 2022 bottom is located.
Should the pair gather sufficient buyers to exceed its 20-day SMA, a strong barrier could initially emerge near 0.6213 and then within the 0.6245-0.6260 range. A successful bounce higher could lift the price straight to the 0.6300 psychological mark or even closer to the December 2023 top of 0.6368.
Summing up, NZDUSD seems to be powerless below its 20-day SMA, though downside risks may not strengthen unless the price slides below 0.6085-0.6095.Related Assets
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