NZDUSD rallied by almost 2% in the previous two trading days but slipped back today to around the 0.65 level. Near term indicators are mixed with the stochastics still rising but RSI peaked before reaching 50 and has dipped back down again. The pair could still have some upside momentum for the coming days but may struggle to make significant gains.
The outlook in the medium term remains bearish with prices below the Ichimoku cloud and the moving averages. The nearest resistance is the 0.66 level – a break above this level could open the way for a rise above the 50-day moving average and into the cloud. This would shift the outlook back to neutral.
To the downside, a drop below Wednesday’s intra-day low of 0.6346 would increase the downside bias and the next support could come at the August 2015 low of 0.6140.
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