HomeContributorsTechnical AnalysisNZDUSD Turns Bullish In Short Term After Dramatic Slump

NZDUSD Turns Bullish In Short Term After Dramatic Slump

NZDUSD has advanced considerably since roughly the beginning of the month, hitting the 0.6780 resistance level again, during Thursday’s European session. The price surpassed the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, while the technical indicators suggest further advances.

Momentum indicators are pointing to a bullish bias in the short term with the RSI above threshold of 50 and the MACD oscillator is rising in the negative territory with strong momentum, indicating a further upside reversal is nearing.

Further gains should see the June 21 bottom of 0.6824 before being able to hit the 38.2% Fibonacci retracement level of the downleg from 0.7060 to 0.6686, around 0.6830. A rise above these strong key levels would reinforce the bullish correction in the short-term and open the way towards the 50.0% Fibonacci mark of 0.6872.

In the event of a downside movement, the 20-SMA near 0.6745 at the time of writing could act as support barrier. A break below this zone would drive the price until the more than two-year low of 0.6686 support.

Overall, NZDUSD seems to be giving back all the losses that it posted in the previous days this week endorsing the scenario for a possible upside retracement.

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