NZDUSD has been in a slightly upside movement over the last 4-hour sessions, flirting with the downward sloping 20- and 40-period simple moving averages (SMAs). Broadly, the pair is trading within a descending formation, while a break above the 200-period SMA may determine the next trend direction.
Looking at momentum oscillators, they suggest further neutral-to bearish movements may be on the cards in the short-term. The RSI is near its neutral 50 line, detecting flat momentum; however, the stochastic oscillator is ticking lower below the 80 level.
If the bulls retake control, price advances may stall initially near the 200-period SMA at 0.7215 before touching the 0.7240 barrier. A potential upside violation above the aforementioned barrier would raise the likelihood for more bullish actions, hitting 0.7285 and 0.7315.
On the other side, a pullback off the short-term SMAs could send the market towards 0.7165 and the 0.7115-0.7135 support area. Steeper decreases could open the way for more losses until the 0.7065 hurdle and the 0.7000 psychological mark.
In the short-term, NZDUSD has been in a decline since it topped on May 26; however, more selling interest below 0.7115 could endorse the bearish outlook.