NZDUSD has gained little today, but it managed to hold below the 20-period simple moving average (SMA), with the technical indicators feeding prospects for a positive short-term trading; the RSI holds well above 50, while the stochastic oscillator continues to strengthen. Also, in Ichimoku indicators, the red Tenkan-sen line stands above the blue Kijun-sen.
A successful bounce above the 20-period SMA could send the price up to 0.7228, a challenging point over the last month. On top of that, the bulls will need to clear the 0.7267 barrier to push the rally towards the 0.7300 round number.
On the downside, support could be initially found around 0.7145, a break of which could see the price slipping towards the 0.7100-0.7120 zone, where the 200-period SMA is currently positioned. A decisive close below 0.7030 could set the stage for a steeper sell-off.
In the medium-term picture, NZDUSD turned positive after violating the 200-period SMA to the upside. Should the market extend above 0.7228, the outlook may turn brighter.
