NZDUSD has been trading in a narrow range between 0.7127 and 0.7215 since October 19.
The technical indicators are in confusion as the RSI is pointing marginally up after the bounce off the 50 level, while the MACD is falling below its trigger line. Furthermore, the 200-day simple moving average (SMA) is flattening, which confirms the recent lack of upward momentum in the market.
If the bulls gain control, they have a chance to push the market above the 0.7215 resistance and make an attempt on the 0.7313 barrier of May 26. If this line is broken, the price may revert to its three-and-a-half-month high of 0.7463.
In the worst-case scenario, a decline below the SMAs might push bears all the way to the 0.6980 support level. If the 0.6857 support and the 0.6800 round number are breached, a bearish trend may begin.
Overall, NZDUSD has been unable to improve the bullish structure that began in late September, remaining stuck in a consolidation zone over the last few weeks.
