NZDUSD retreated slightly from a newly formed resistance band of 0.6797-0.6801 involving the previous 17½-month high of 0.6797. The improvement in the bullish simple moving averages (SMAs) is assisting the positive price action, though the technical indicators reflect some waning in the pair.
The short-term oscillators reflect the struggle in price to ascend further. The MACD is some distance in the positive region and above its red trigger line but looks to be easing somewhat, while the RSI is hovering above the 70 level. In overbought territory, the stochastic %K line has dipped below its %D line but has yet to clearly confirm negative tendencies in price. Nevertheless, a deeper pullback cannot be ruled out as the zone of peaks seems to be keeping buyers at bay.
If selling interest increases, first interruptions to downside moves may develop at the support belt of 0.6742-0.6750. Losing further ground may guide the pair towards the mid-Bollinger band at 0.6715 and the 0.6708 barrier beneath. Extending the drop past this too, sellers may meet the key 0.6677 trough and adjacent 50-period SMA at 0.6672. Should the bears persist, they may be challenged by the 100- and 200-period SMAs of 0.6654 and 0.6631 respectively, before the lower Bollinger at 0.6622 and the 0.6612 obstacle attempt to neutralise the descent.
Climbing, the pair may see early resistance arise from a revisit of the zone from the 0.6797 peak until the upper Bollinger band at 0.6806. Conquering this tough border, the price may accelerate towards the 0.6836 boundary from April 2019, before propelling for the 0.6864-0.6872 limiting band. Surpassing this too, the pair may aim for the 0.6893 border from March 2019.
Summarizing, in the short-term picture NZDUSD appears to hold a neutral-to-positive tone. A break above 0.6800 may reinforce a bullish bias, while a return below the mid-Bollinger band may neutralize the bias.
Origin: XM
