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Technical Analysis – NZD/USD eases following strong bearish rally

NZD/USD 03/05/18 | EconAlerts


NZD/USD eases following strong bearish rally; broader medium-term trend negative.

NZD/USD stalled its decline after a strong bearish rally over the previous two weeks. The pair is still trading below the 20- and 40-simple moving averages in the 4-hour chart but it has rebounded somewhat from the more than four-month low of 0.6985 hit earlier on Thursday.

The RSI has flattened below the 50 level, indicating that the market could be neutral in the short-term. However, the MACD oscillator supports a bullish picture, having moved above its red-trigger line.

Should the pair manage to strengthen its upward movement and jump above the moving averages at 0.7023 and 0.7048, the next resistance could come around 0.7095. A break above this level would shift the bias to a more bullish one and open the way towards the 0.7140 barrier, which overlaps with the 38.2% Fibonacci retracement level of the down-leg from 0.7395 to 0.6895.

An alternative scenario is a resumption of the bearish structure and a retest of the previous multi-month low of 0.6985. A break below the aforementioned level could open the way towards the 0.6950 support, identified by the low on December 2017.

NZD/USD 03/05/18 | EconAlerts

 

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Disclaimer:
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.


source: XM

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