NZDUSD has been trending lower since March, generating a profound structure of lower highs and lower lows. Nevertheless, the pair has posted a moderate recovery and has jumped above its 50-day simple moving average (SMA) after finding its feet at the 30-month low of 0.5510.
The momentum indicators are endorsing a positive near-term tone. Specifically, the MACD histogram is strengthening above both zero and its red signal line, while the RSI has crossed above its 50-neutral mark.
To the upside, bullish actions could send the price to test the 0.6000 psychological mark, which temporarily curbed the pair’s recent rebound. Conquering this barricade, the price might ascend towards the July low of 0.6060 or higher to test the 0.6160 barrier. A break above the latter may turn the spotlight to the August peak of 0.6467.
Alternatively, any declines could meet initial support at the inside swing high of 0.5815, which overlaps with the 50-day SMA. Sliding beneath that floor, the bears could target the November low of 0.5740 before the 0.5598 hurdle appears on the radar. Violating this zone, the price might retreat towards the 30-month low of 0.5510.
Overall, NZDUSD has managed to erase a substantial part of its steep decline as positive momentum appears to be strengthening. However, a break above the 0.6160 ceiling is needed to shift the medium-term outlook back to neutral.