NZDUSD looks motionless around the Ichimoku cloud and stuck between the 50- and 100-day simple moving averages (SMAs). Nonetheless, the slightly upward sloping Ichimoku lines and the 50- and 100-day SMAs are continuing to promote a rather positive tone.
That said though, the short-term oscillators reflect a condition of weak directional momentum. The MACD is holding marginally above the zero line but below its trigger, while the downward-pointing RSI is flirting with its neutral threshold. However, the stochastics %K line is promoting further advances with a bounce off the 20 level and a positive overlapping of its %D line.
To the downside, immediate support may develop from the critical 100-day SMA at 0.6611 and the neighbouring lows of 0.6588 and 0.6545 respectively. Dipping further, the key limiting region of troughs of 0.6487-0.6510 could prove to be a tough border to overcome. However, successfully diving deeper, the 0.6378 trough – fortified by the 200-day SMA – may attempt to dismiss further loss of ground in the pair.
Alternatively, buyers’ efforts would need to step above the Ichimoku lines and cloud, as well as the 50-day SMA at 0.6657, in order to build confidence and thrust the pair towards the section of tops between 0.6785-0.6800. Overhead the 0.6836 barrier may attempt to impede the pair from challenging the 0.6923-0.6968 peaks from December 2018 through to March 2019. Triumphing above may then see the bulls aim for the 0.7060 obstacle from June 2018.
Overall, NZDUSD continues to signal a neutral-to-bullish tone above the 100-day SMA and the 0.6588 low, despite its fairly stagnant demeanour. A break below 0.6487 could spark negative pressures.
