Technical Analysis – NZDUSD points marginally up within trading range

NZDUSD is ticking slightly higher, remaining within a medium-term consolidation area with upper boundary the 0.6510 resistance and lower boundary the 0.6190 support. The technical oscillators are confirming this sideways move on price as the MACD is standing near the zero level, while the RSI is flattening in the negative region.

Should selling forces strengthen, the 200-day simple moving average (SMA), which overlaps with the lower boundary of the channel at 0.6190 will come under the spotlight. The 0.6150 could initially turn into support to keep the bias on the positive side. Moving lower, the 0.6060 could next add some footing ahead of the 0.5740 barrier.

Alternatively, a close above the short-term SMAs could push the price towards the 0.6510 resistance, which has been frequently tested during the previous week. Beyond that, the rally may gear up to 0.6570 before meeting the next obstacle of the 200-weekly SMA at 0.6600.

In brief, EURJPY is facing a weakening bullish bias in the medium-term, where a drop below 0.6510 is expected to enhance selling interest.

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