NZD/USD turns higher in the short-term; remains below 61.8% Fibonacci.
NZD/USD has recovered substantially after the selling interest from the 0.6968 level, almost hitting the 61.8% Fibonacci retracement level from 0.6968 to 0.6560, around 0.6812. Currently, the price is trading well above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart. However, the technical indicators are suggesting flat to a bearish movement as the RSI is sloping down in the positive zone and the MACD is moving sideways above the trigger line.
A move to the upside could see immediate resistance at the 61.8% Fibonacci level of 0.6812. Should the market increase positive momentum above this area, the 0.6880 could be the next level for investors to focus on. A stronger barrier, though, could be found at the 0.6910 level, registered on December 11.
Should the pair face more negative pressures, the market could meet support at the 50.0% Fibonacci of 0.6765, which stands slightly above the 0.6752 level and the 20-SMA. A successful close below this level could see a retest of the 38.2% Fibonacci of 0.6715.
To sum up, NZD/USD has been trading higher in the very short-term following the rebound on the 0.6560 support.
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