NZDUSD is bearish in the near-term and the clearly is downside pressure, with scope for prices to target support at 0.6800.
Downside momentum is not that strong though, based on the daily RSI. There is possibility for the market to make a recovery or consolidate at current levels. Immediate resistance will be seen at the 50-day moving average at 0.6967, which is close to the May 3 high. Above this, the key level at 0.7000 will act as a strong barrier to upside moves. A successful break of this resistance would see prices target the 200-day moving average, currently at 0.7120.
For now, the bearish stance would remain if the pair is unable to break resistance at 0.6967 in the near term. A break below 0.6800 would accelerate a decline towards 0.6670 (near May 2016 low).
The medium-term outlook is bearish too, as indicated by the technicals. MACD is below zero and the market is trading below the 50-day and 200-day moving averages.
Origin: XM
