NZDUSD created a higher low at 0.5921 and strengthened above the middle Bollinger band, which is also the 20-day simple moving average (SMA), increasing hopes for further improvement in the short-term. The RSI could add to the positive signals if it manages to climb comfortably above its 50 neutral mark.
Moreover, to attract investors’ attention, the pair needs to overcome the nearby resistance of 0.6067. Such a move could generate additional gains towards the upper Bollinger band, while a decisive close above 0.6150 and the descending trendline that has been capping upside corrections since the start of the year may trigger a more exciting session. Next, the 0.6200-0.6250 former restrictive area could take immediate action.
Failure to successfully clear 0.6067 may shift the spotlight back to the 0.5921 low if the 0.6000 level lets the bears to pass. Beneath that, the sell-off could take a breather near the 0.5773 barrier before it re-tests the 0.5600-0.5665 zone.
Meanwhile in the medium-term timeframe, the pair is still in a downtrend and only a peak above 0.6325 would upgrade the negative outlook. Yet, the falling 50-day SMA is currently discouraging a positive trend reversal.
In brief, NZDUSD’s short-term risk seems to be tilted to the upside, with the confirmation awaited above 0.6067.
