Technical Analysis – NZDUSD rallies beyond downtrend line
NZDUSD rises above 200-day SMA too
RSI and stochastics suggest more bullish moves
According to the technical oscillators, the RSI is heading north and is approaching the 70 level with strong momentum, while the stochastic is entering the overbought territory after the bullish crossover within its %K and %D lines.
If the market continues the buying interest, then it may move towards the 0.6080-0.6105 restrictive region. A successful rally beyond this area could drive the bulls until the 0.6180 barricade.
In the negative scenario, a move back beneath the 200-day SMA and the descending trend line could open the way towards the 50-day SMA at 0.6000 and the 0.5980 level. If the latter level is breached, this would increase the downside pressure and bring about a reversal of the upside movement that started after the bounce off 0.5850. The price may then challenge the 20-day SMA at 0.5970 and the 0.5940 support.
Overall, NZDUSD has been slightly bullish lately, but any climb above 0.6105 could endorse the upside structure in the market.Related Assets
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