NZDUSD finished Tuesday’s session marginally below the 50-day simple moving average (SMA), while early on Wednesday it managed to pierce the 0.66 round level as well before pulling slightly up.
The fast-Stochastics hint that the downfall is overstretched and hence buying pressures could soon take place, but the RSI needs to reverse south and rise back above its 50 neutral mark to further boost the odds for an upside correction.
The 0.6580 level, which halted downside movements early today and in April, could act as support if the market continues to weaken. If the bears beat that mark and exit the Ichimoku cloud, selling orders could rise, with the price probably stopping next within the 0.6500-0.6480 area. Even lower, the door could open for the 2018 trough of 0.6423.
Alternatively, a closing price above the 20-day SMA currently at 0.6678 could add more value to the market, driving the pair towards the 200-day SMA and the 0.6725 former support level. Higher, all attention will shift to the 4 ½-month peak of 0.6789 and the 0.6800 number.
In the three-month picture (medium-term), NZDUSD switched from bullish to neutral after the fall below the 0.6700 level.
