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Technical Analysis – NZD/USD a possible upside retracement

NZD/USD 05/07/18 | EconAlerts

NZD/USD turns bullish in the short-term after a dramatic slump.

NZD/USD has advanced considerably since roughly the beginning of the month, hitting the 0.6780 resistance level again, during Thursday’s European session. The price surpassed the 20- and 40-simple moving averages (SMA) in the 4-hour chart, while the technical indicators suggest further advances.

Momentum indicators are pointing to a bullish bias in the short term with the RSI above the threshold of 50 and the MACD oscillator is rising in the negative territory with strong momentum, indicating a further upside reversal is nearing.

Further gains should see the June 21 bottom of 0.6824 before being able to hit the 38.2% Fibonacci retracement level of the down-leg from 0.7060 to 0.6686, around 0.6830. A rise above these strong key levels would reinforce the bullish correction in the short-term and open the way towards the 50.0% Fibonacci mark of 0.6872.

In the event of a downside movement, the 20-SMA near 0.6745 at the time of writing could act as support barrier. A break below this zone would drive the price until the more than two-year low of 0.6686 support.

Overall, NZD/USD seems to be giving back all the losses that it posted in the previous days this week endorsing the scenario for a possible upside retracement.

NZD/USD 05/07/18 | EconAlerts



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source: XM

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