HomeContributorsTechnical AnalysisNZDUSD Rallies Beyond Downtrend Line

NZDUSD Rallies Beyond Downtrend Line

  • NZDUSD rises above 200-day SMA too
  • RSI and stochastics suggest more bullish moves

NZDUSD is flying above the medium-term ascending trend line and the 200-day simple moving average (SMA), indicating a potential upside recovery.

According to the technical oscillators, the RSI is heading north and is approaching the 70 level with strong momentum, while the stochastic is entering the overbought territory after the bullish crossover within its %K and %D lines.

If the market continues the buying interest, then it may move towards the 0.6080-0.6105 restrictive region. A successful rally beyond this area could drive the bulls until the 0.6180 barricade.

In the negative scenario, a move back beneath the 200-day SMA and the descending trend line could open the way towards the 50-day SMA at 0.6000 and the 0.5980 level. If the latter level is breached, this would increase the downside pressure and bring about a reversal of the upside movement that started after the bounce off 0.5850. The price may then challenge the 20-day SMA at 0.5970 and the 0.5940 support.

Overall, NZDUSD has been slightly bullish lately, but any climb above 0.6105 could endorse the upside structure in the market. 

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