NZDUSD has found a toehold at the Ichimoku cloud’s upper surface joined by the 50-day simple moving average (SMA) at 0.6612, after its pullback from the 13½-month peak of 0.6789. The progressing slopes of the 50- and 100-day SMAs appear to be assisting the positive structure.
That said, the positive Ichimoku lines reflect the stall in the climb, while the short-term oscillators display the recent weakening in price. The MACD has dipped below its red trigger line slightly above the zero mark, while the RSI returned above its neutral threshold. The negatively charged stochastic oscillator’s %K line has slipped below 20, promoting further losses.
Initial traction off the 50-day SMA at 0.6612 may encounter immediate friction from the Ichimoku lines at 0.6640 and 0.6700 respectively, before challenging the key 0.6754 to 0.6789 resistance section. Gaining sustained momentum, the price could target the 0.6940 to 0.6968 crucial area of tops from December 2018 through to March 2019. Another run up may then meet the 0.7060 peak from June 2018.
If selling interest increases, direct support may arise from the 50-day SMA coupled with the cloud’s ceiling at 0.6612. A successful dip into the cloud may then discover downside pressure at the 0.6487 trough. Should this barricade fail to reject further losses, the 100-day SMA at 0.6432 and the crucial support zone of 0.6378 to 0.6342 – encapsulating the 200-day SMA – may attempt to terminate the decline.
In brief, the short-to-medium term bullish structure maintains its potency above the SMAs, the cloud and specifically above the 0.6487 trough.
