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Technical Analysis – NZD/USD creates a double bottom

NZD/USD 24/01/19 | EconAlerts

NZD/USD edges lower after creating a double bottom in the near term.

NZD/USD has retreated from the 0.6805 resistance level and the 38.2% Fibonacci retracement level of the down-leg from 0.7390 to 0.6423, around 0.6794 after the pullback from the double bottom on 0.6705. The short-term bias looks negative as the MACD keeps losing ground with weak momentum above its trigger and zero lines, while the RSI seems to be making its way down towards the 50 neutral level, risking a move to a bearish territory.

The 40- and the 20-simple moving averages (SMA) at 0.6760 and 0.6750 respectively could be critical levels for steeper bearish actions if the pair continues the negative movement. Also, the 0.6670 could attract some attention, taken from the low on January 4, while a significant leg below this hurdle could open the door for the next support of the 23.6% Fibonacci of 0.6650.

However, if the pair reverses back to the upside and rise above 0.6805, investors could make a pause at the 0.6847 resistance. More increases could send the pair towards the next hurdle of 0.6880, registered on December 18.

Overall, NZD/USD has reverted back to the downside in the 4-hour chart, slipping below 0.6805, however, the SMAs are ready to post a bullish crossover, indicating a possible rebound on them.


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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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