- NZDUSD attempts to rebound from its 2023 lows
- Gets rejected at 0.6000 but 50-day SMA provides support
- Momentum indicators remain cautiously tilted to the upside
NZDUSD has been in a steady downtrend throughout 2023, posting a fresh one-year low of 0.5772 on October 26. Although the pair showed some signs of life lately, its rebound fell short around the 0.6000 handle, with the 50-day simple moving average (SMA) pausing the setback for now.
Should the price bounce off its 50-day SMA and storm back higher, immediate resistance could be found at 0.5952, which is the 23.6% Fibonacci retracement of the 0.6536-0.5772 downtrend. Piercing through that wall, the pair might challenge the 38.2% Fibo of 0.6064 before the 50.0% Fibo of 0.6154 gets tested. Further advances could then cease at the 61.8% Fibo of 0.6244.
On the flipside, if the bullish pressures wane, the pair could extend its latest retreat towards the September low of 0.5858. A break below that zone may pave the way for the 2023 bottom of 0.5772. Sliding beneath that floor, the price could descend towards fresh multi-month lows, where the September 2022 support of 0.5598 could provide downside protection.
Overall, NZDUSD’s attempts for a solid rebound faltered, but the short-term oscillators are still in their positive territories as the 50-day SMA prevented further declines. Can the bulls put the price back on the rails to recovery?