NZDUSD Exhibits Tendency For Further Advances

NZDUSD is extending price action above the 100- and 50-period simple moving averages (SMAs) after recently finding some traction at the 200-period SMA. Moreover, the slight incline in the SMAs backs the recent improvement in the pair.

Turning to the short-term oscillators, they are suggesting that the price may continue to advance for now. The MACD is strengthening in the positive region above its red signal line, while the rising RSI approaches the 70 oversold mark. Moreover, the stochastic lines – in overbought territory – have yet to show bearish signs for now.

If buyers maintain the climb in price, resistance may originate at the nearby high of 0.6175 from April 30. A push past this may then meet pressure from the 0.6217 obstacle, that being the 76.4% Fibonacci retracement of the down leg from 0.6447 to the 11-year low of 0.5468. A sustained rally over the 0.6241 inside swing low and the 0.6275 barrier could progress for the 0.6342 peak and 0.6447 top.

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If sellers retake control, the 61.8% Fibo of 0.6072 – joined by the 50-period SMA – could apply initial downside limitations ahead of the 100-period SMA of 0.6035 and the 200-period SMA, residing around the low of 0.5991. Slipping below this, support could develop from the 50.0% Fibo of 0.5958 ahead of the 0.5910 key border. A dip past this too could challenge the strengthened trough, which happens to also be the 38.2% Fibo.

Overall, very short-term optimism exists in the pair and a move above 0.6217 could return a neutral picture in the medium-term, while a break above 0.6447 could shift the short-term timeframe neutral-to-bullish.

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