HomeContributorsTechnical AnalysisNZDUSD Stretches Ascending Move to New 4-Month High

NZDUSD Stretches Ascending Move to New 4-Month High

NZDUSD posted a fresh four-month high at 0.6973 today, but the bulls have yet to successfully breach the 61.8% Fibonacci retracement level of the down leg from 0.7220 to 0.6524 at 0.6950. 

The MACD oscillator is strengthening its momentum above its trigger and zero lines, whereas the RSI indicator is sloping slightly down around the 70 level. In trend indicators, the price is holding above the strong 200-day simple moving average (SMA), and the short-term SMAs are moving higher as well.

If the pair overcomes successfully the recent high, it could move towards the 0.7080 resistance taken from the peaks in November 2021. Stepping higher, the price could make a pause between the 0.7175 barrier and the top from October 2021 at 0.7220.

On the other hand, a drop below the 61.8% Fibonacci at 0.6950 could open the door for the 200-day SMA at 0.6910. The 50.0% Fibonacci of 0.6870 could be the next stop, while sharper declines could meet the short-term uptrend line around the 0.6810 support and the 38.2% Fibonacci of 0.6790.

All in all, NZDUSD has been in an ascending movement since January 28, creating higher highs and higher lows. A slide below the rising trendline could switch the short-term bias to negative, shifting attention back to the medium-term downtrend.

XM is a fully regulated next-generation financial services provider of online trading on currency exchange, commodities, equity indices, precious metals and energies, with services to clients from over 196 countries worldwide. Founded in 2009 by market experts with extensive knowledge of the global forex and capital markets and with the aim to ensure fair and reliable trading conditions for every client, XM has reached international recognition by virtue of its unbeatable execution of orders, spreads as low as zero pips on over 50 currency pairs, gold and silver, flexible leverage up to 888:1, and personalized customer engagement to foster clients’ success.

Featured Analysis

Learn Forex Trading