Technical Analysis – NZDUSD edges across 38.2% Fibonacci around 0.71



NZDUSD is creeping sideways along the 0.7100 level, which happens to be surrounded by the 100- and 200-day simple moving averages (SMAs) at 0.7070 and 0.7120 respectively, after its latest rally ran out of steam. Judging from the SMAs, they are mostly promoting a neutral price development.

The short-term oscillators appear fairly flat and are signalling weak and mixed signals in directional momentum. The MACD has flattened towards its red trigger line in the positive area, while the RSI is trying to improve in bullish territory. The stochastic oscillator is static with its %K line marginally below its %D line, endorsing no clear price direction in the pair for now.

In a positive scenario, preliminary upside obstructions could come from the 200-day SMA at 0.7120 ahead of the resistance band of 0.7150-0.7169. Piloting higher, the upper Bollinger band coupled with the 0.7239 level, being the 23.6% Fibonacci retracement level of the up leg from 0.6510-0.7464, could delay the test of the 0.7286-0.7315 near-term ceiling, an area involving peaks from early March, April and May.

Alternatively, sellers may struggle to break below the immediate 38.2% Fibo of 0.7098 and the nearby 100-day SMA at 0.7070. However, should this play out, a neighbouring zone of support could develop between 0.7043 until the 50-day SMA at 0.7003, which also encapsulates the mid-Bollinger band. Declining further, the price may meet the 0.6932 low before targeting the 61.8% Fibo of 0.6876. From here, if sellers remain in the driving seat, the lower Bollinger band at 0.6834 may come into focus prior to the key 9-month trough of 0.6803.

Summarizing, NZDUSD’s directional forces seem to have temporarily dried up as the price is stuck between the 100- and 200-day SMAs. Nevertheless, a break above the 0.7150-0.7169 barrier or beneath the 50-day SMA at 0.7003 could produce a new price course.

 

 

Latest News

US Open Note – Evergrande ghost haunts markets; euro weaker ahead of German election


Weekly comment – Germany votes as markets digest Evergrande


Technical Analysis – NZDUSD positive impetus fades as 100-MA deters gains



Week Ahead – German elections, China woes, and tons of data

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.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.