Technical Analysis – NZDUSD fails to post lower low below 26-month bottom
Looking to the short-term oscillators, the MACD and the stochastic are promoting negative momentum. The MACD is strengthening below its trigger and zero lines, while the stochastic posted a bearish cross within its %K and %D lines near the oversold territory.
Should buyers drive above the 0.6195 resistance, they could encounter initial strengthened resistance from the 20-day simple moving average (SMA) at 0.6230 and the medium-term descending trend line around 0.6265. A step above may meet further constrictions from the 40-day SMA at 0.6335 and the 0.6395 resistance, which stands near the Ichimoku cloud.
Otherwise, if sellers take control, initial support could come from the 0.6095 barrier ahead of the 0.5920 trough, taken from the low in May 2020.All in all, the medium-term timeframe is sustaining a bearish mode for now. However, a break above the downtrend line may open the way for a bullish correction.
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.