NZDUSD is testing the 200-period simple moving average (SMA) in the four-hour chart for the first time since August at 0.5764.
The pair has been gently trending up following the drop to 0.5510, the lowest since March 2020. From a technical perspective, the positive trajectory in the RSI and the MACD is signaling additional gains ahead, though any advances could prove limited if the channel’s upper boundary halts the recovery within the 0.5830-0.5860 region. The 0.5900 psychological mark might be another hurdle, preventing a sharp rally to 0.6000.
Should selling pressures resurface, pushing the price below the 200-period SMA, the 20-period SMA could immediately come to the rescue at 0.5710. Slightly lower, the pair may retest the 50-period SMA around 0.5660 before meeting the channel’s lower band near 0.5645. If the latter gives way, the decline could pick up steam towards the 0.5600-0.5560 restrictive area.
In brief, NZDUSD has the potential for more upside in the coming sessions, with traders awaiting a clear close above the 200-period SMA to raise their buying orders. Yet, whether any advance will be sustainable remains to be seen.
