NZD/USD creates a bearish rally; neutral in the short term.

NZD/USD has lost its positive momentum following the bounce off the 0.6900 psychological level, which pushed the price below the 20- and 40-simple moving averages (SMAs) as well as below the 23.6% Fibonacci retracement level of the up leg from 0.6560 to 0.6940, around 0.6850. Also, the price is struggling inside the Ichimoku cloud and the RSI and the MACD are moving with weak momentum in the 4-hour chart, suggesting a neutral mode.

In the negative scenario, a slip below the 0.6832 support could open the way towards the 38.2% Fibonacci of 0.6795 before heading until the 0.6750 – 0.6755 support area, which encapsulates the 50.0% Fibonacci region.

A reversal to the upside and a successful jump above the 23.6% Fibonacci and the 40-SMA could retest the 20-SMA currently at 0.6870. Higher still, the 0.6900 level would increasingly come into scope, while the two-month high of 0.6940 could be the next resistance for investors to turn their attention in the near term.

In the longer-timeframe, NZD/USD has been slightly bullish after the bounce off the two-month low of 0.6560, however, in the short-term the price has been remaining neutral over the last month.


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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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