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Technical Analysis – NZDUSD bounces off 40-SMA; positive outlook remains intact
NZDUSD has rebounded off the 40-day simple moving average (SMA) since yesterday, remaining well above the long-term ascending trend line. The RSI is heading upwards with weak momentum, approaching the positive territory, however, the MACD is falling beneath its trigger line, mirroring the latest decline in the price action from the 33-month high of 0.7314.
Immediate resistance to further gains would likely come from the multi-month high of 0.7314. If there is a successful break above this area, further resistance could be met around the 0.7390 barrier, taken from the peak on April 2018.
If, however, the upside momentum was to lose steam and the pair reverses lower, support would initially come from the uptrend line around 0.7047. Slipping below this level could take prices towards the 0.6995 barrier and the 23.6% Fibonacci retracement level of the upward wave from 0.5470 to 0.7314 at 0.6880, shifting the bias to neutral. Below that, the 0.6800 round number and the 38.2% Fibonacci of 0.6610 near the 200-day SMA would come into sight next.
In the long-term picture, the bullish outlook remains intact since March 2020.