NZDUSD opened below the support of 0.6722, after plotting a five-month high of 0.6754 for the end of 2019. The picture for the pair still looks strongly positive, with the Ichimoku lines and all simple moving averages (SMAs) sustaining their bullish crossovers and their upward slopes.
The short-term oscillators lean towards the positive picture despite the recent weakening. The MACD, deep in the positive region, has slipped slightly below its red trigger line, while the RSI – though falling in the bullish zone – has not broken previous lows.
If buyers reemerge and manage to push back above the 0.6722 level (previous support-now-resistance), the fresh five-month high of 0.6754 could obstruct the climb. Overtaking the peak, the pair could encounter resistance from the highs of 0.6789 and 0.6800, those being from July 19 and April 3 of 2019 respectively. Advancing further, the 0.6836 peak from April 1 could be next to challenge the bulls.
Otherwise, if sellers steer lower, initial support could come at 0.6690 where the Kijun-sen line also lies. Following, the 50-period SMA at 0.6647 could apply some pressure ahead of the inside swing high of 0.6634. Next, the 100-period SMA residing at the upper band of the Ichimoku cloud may halt the decline towards the 0.6587 support and the swing low of 0.6556. Surpassing this, the trough of 0.6520 coupled with the 200-period SMA could draw traders’ attention.
Overall, the short and medium-term view continues to reflect a bullish bias and a close above 0.6800 would strengthen this outlook.
