NZDUSD has lost its positive momentum after failing to break above its 0.7176 level in the past couple of sessions. The pair has currently crossed below the red Ichimoku cloud and its 50-day simple moving average (SMA), promoting a negative short-term outlook.
The negative bias and the recent price depreciation of the pair are also supported by the short-term momentum indicators, as the RSI is hovering below its 50 neutral mark, while the MACD is found below zero and its red signal line.
Should the price breaks below its 0.7096 support, the bears may then target the 0.7071 region. A further descending movement from this level could intensify selling pressures, sending the price to test its 200-day SMA currently found at 0.7056. Breaking below this level could strengthen the negative momentum of the pair, paving the way towards the 0.6975 barrier.
On the flip side, if the price breaks above the congested region, which encapsulates the 0.7131 level and the 50-day SMA currently at 0.7140, could turn the cards around for the pair, sending it towards its 0.7176 level. Any advancements beyond that crucial level could revive the positive momentum, sending the price towards the strong 0.7217 barrier.
In brief, the overall outlook for the NZDUSD is cautiously negative. However, this might change if the price breaks above the congested region, including the 0.7131 level and the 50-day SMA, while breaking below its 200-day SMA could strengthen the pair’s negative momentum.
