Technical Analysis – NZDUSD pulls back from November peak
NZDUSD attempts to rebound from its 2023 lows
Gets rejected at 0.6000 but 50-day SMA provides support
Momentum indicators remain cautiously tilted to the upside
NZDUSD has been in a steady downtrend throughout 2023, posting a fresh one-year low of 0.5772 on October 26. Although the pair showed some signs of life lately, its rebound fell short around the 0.6000 handle, with the 50-day simple moving average (SMA) pausing the setback for now.
Should the price bounce off its 50-day SMA and storm back higher, immediate resistance could be found at 0.5952, which is the 23.6% Fibonacci retracement of the 0.6536-0.5772 downtrend. Piercing through that wall, the pair might challenge the 38.2% Fibo of 0.6064 before the 50.0% Fibo of 0.6154 gets tested. Further advances could then cease at the 61.8% Fibo of 0.6244.
On the flipside, if the bullish pressures wane, the pair could extend its latest retreat towards the September low of 0.5858. A break below that zone may pave the way for the 2023 bottom of 0.5772. Sliding beneath that floor, the price could descend towards fresh multi-month lows, where the September 2022 support of 0.5598 could provide downside protection.
Overall, NZDUSD’s attempts for a solid rebound have faltered, but the short-term oscillators are still in their positive territories as the 50-day SMA prevented further declines. Can the bulls put the price back on the road to recovery?
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
