NZDUSD is ranging around the 0.7000 hurdle ever since the pair manoeuvred below the 200-day simple moving average (SMA). Although the pair is exhibiting a slight negative preference, buyers are currently labouring to return back above the 0.7000 mark. Endorsing negative price tendencies are the converged 50- and 100-day SMAs, which are dipping, and are looking positioned to complete a bearish overlap of the 200-day SMA.
The negatively charged Ichimoku lines are also gliding lower, signalling that sellers are still ahead. Nonetheless, the short-term oscillators are conveying growing positive momentum. The MACD, in the negative zone, is cruising above its red trigger line, while the RSI is heading up towards the 50 level. The stochastic %K line has jumped back above its %D line, implying positive price action is rising.
If the price decisively navigates above the 0.7000 obstacle and the adjoining red Tenkan-sen line, it may encounter an initial zone of upside limitations, which could prove difficult to conquer, existing between the 200-day SMA at 0.7071 and the 100-day SMA at 0.7122. Triumphing over this barricade, which also encapsulates the 38.2% Fibonacci retracement of the up leg from 0.6510 until 0.7464, and the Ichimoku cloud, the bulls may then meet the 0.7160 nearby high. Should buyers’ confidence grow, they could propel the price towards the 23.6% Fibo of 0.7239 before challenging the ceiling of 0.7286-0.7315, accompanying a 4½-month sideways market.
Alternatively, a surge of selling orders may steer the price back to the June 18 barrier of 0.6922 and possibly lower to challenge the 61.8% Fibo of 0.6876. If the 61.8% Fibo fails to soften the pace of the descent, the pair could snowball towards the 0.6800 border. Should selling interest persist, the 76.4% Fibo of 0.6734 may then come into focus.
In conclusion, as negative forces have yet to abate NZDUSD is demonstrating a short-term neutral-to-bearish preference below the SMAs and the cloud.
Origin: XM
