NZDUSD has been in a prolonged downtrend since March when it peaked on the 0.7032 area. Though the worth has managed to regain some misplaced floor after its downfall ceased on the 26-month low of 0.6069, it’s at present being held down by the congested area that features its 50-day easy shifting common (SMA) and the higher Bollinger band.
The short-term oscillators counsel that the constructive momentum is waning. Particularly, the RSI has crossed beneath its 50-neutral threshold, whereas the stochastic oscillator is descending after being rejected on the 80-overbought space.
To the draw back, bearish actions might ship the worth to check the June assist of 0.6195. Additional draw back strain might then open the door for the 26-month low of 0.6059. A violation of the latter might ship the worth to type contemporary multi-year lows, the place the Might 2020 low of 0.5920 might be the subsequent assist area.
On the flipside, if shopping for curiosity intensifies, the latest peak of 0.6305, which overlaps with the 50-day SMA, might act as speedy resistance. Piercing by means of this area, the bulls might problem 0.6398 earlier than the highlight turns to the June excessive of 0.6575. Increased, 0.6930 may show to be a tricky barrier for the worth to beat.
General, although NZDUSD’s short-term image has been bettering, its restoration appears to be operating out of steam. Due to this fact, a transparent break above its 50-day SMA is required to sign the resumption of the pair’s newest rebound.