NZDUSD has pulled lower from the fresh four-month high of 0.6602 following a bounce off the 50-period simple moving average (SMA), which revived the bigger positive picture. Further backing the ascent are the upward sloping SMAs and the supportive trendline.
The short-term oscillators, although reflect a pause in positive momentum, continue to support the upside view. The MACD remains in the positive zone and above its red trigger line, while the RSI has turned down below the 70 level.
If buyers pick up, immediate resistance could come from the 0.6587 high from August 6 and recent peak of 0.6602. Overrunning the peak could drive the price to test the 0.6640 resistance. Conquering this too, the 0.6690 obstacle could challenge buyers’ efforts to reach the 0.6722 swing high from July 24.
To the downside, sellers could initially encounter support from the 0.6556 level, followed by the 50-period SMA at 0.6537 ahead of the latest low of 0.6520. Surpassing the nearby swing low of 0.6502, the 100-period SMA at 0.6477 could halt further declines towards the key support of 0.6464, which if breached, could turn the medium-term bias back to a neutral one. If the bears persist, the next significant hurdle to overcome is the 0.6430 to 0.6435 area where the supportive trendline and 200-period SMA are located.
In brief, the short-term bias is bullish above 0.6502 and a break above 0.6602 would reinforce the positive sentiment.
