HomeContributorsTechnical AnalysisNZDUSD Extends Slide Near 200-day SMA

NZDUSD Extends Slide Near 200-day SMA

NZDUSD had experienced a prolonged downtrend since March, hitting a 31-month low of 0.5510 in early October. Even though the pair has posted a strong recovery since then, it is currently experiencing a pullback after its rebound came to halt at the six-month high of 0.6575.

The momentum indicators suggest that bearish forces have gained control. Specifically, the stochastic oscillator is descending after it failed to complete a bullish cross, while the MACD histogram has retreated further below its red signal line but remains in the positive zone.

Should the pair extend its decline, immediate support could be met at the 200-day simple moving average (SMA), currently at 0.6250. Dipping below that region, the bears could target 0.6155 before the focus shifts to the November support of 0.6063, which overlaps with the 50-day SMA. Even lower, the inside swing high of 0.5815 could halt any further retreats.

To the upside, bullish forces might propel the pair towards the August high of 0.6467. Conquering this barricade, the price could test the recent peak of 0.6512, which rejected the pair’s medium-term rebound. Surpassing that zone, the spotlight could turn to the June high of 0.6575.

Overall, NZDUSD seems to be experiencing a short-term downside correction after its rebound failed to strengthen. Hence, a clear break above the 0.6512 ceiling could signal the continuation of the pair’s recovery.

XM.com
XM.comhttp://clicks.pipaffiliates.com/c?c=231129&l=en&p=0
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