NZDUSD is attempting to move away from the new 6-year low it set on August 5 but the intra-day upside bias is weak. RSI is rising but still below 50. The stochastics are also rising but appear to be slowing as the %D line diverts away from the %K line.
The medium term outlook remains bearish as the pair trade below the moving averages and the Ichimoku cloud. But with the tenkan-sen line moving sideways to align with the kijun-sen line, NZDUSD could be looking to consolidate.
If prices rise above the resistance level provided by the tenkan-sen line at 0.6614, the downside momentum will weaken further. But a stronger rise above the 50-day moving average at around 0.6785 is needed to reverse the downtrend.
A drop below the support level of the August 5 low of 0.6490 would put the pair back on the current downtrend that started in April.
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