Technical Analysis – NZDUSD bulls face big challenge around 0.6500
NZDUSD continues to rise above the Ichimoku cloud and the short-term simple moving averages (SMAs), remaining above the long-term downtrend line. According to the MACD, positive momentum could push for further gains as the indicator picks up steam above its red signal line. The RSI is also advancing, though, it is relatively close to the 70 overbought threshold.
More increases could drive the market towards the six-month high of 0.6512 ahead of the 0.6570 barrier, registered on May 29. Even higher, the price could challenge the 0.7170 resistance, taken from the peak in August 2021.
A reversal to the downside could stall at the 20- and the 40-day SMAs at 0.6330 and 0.6285 respectively before entering into the Ichimoku cloud and testing the crucial 200-day SMA at 0.6200. Further below, the 0.6150 support could also provide support, shifting the outlook back to bearish.
Regarding the long-term picture, the bullish outlook has built up as the pair continues to hold above the descending trend line.
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