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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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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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