NZDUSD’s Minor Uptrend Prevails after Deflection Off 200-MA

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NZDUSD has generated positive traction off the 50-day simple moving average (SMA), which is bordering the tentative uptrend line pulled from the 16-month low of 0.6528. The longer-term 100- and 200-day SMAs are defending the broader bearish trend in the pair, while the flattened slope of the 50-day SMA, is hinting that the latest up wave remains active.

The Ichimoku lines are indicating a pause in bullish forces, while the short-term oscillators are transmitting mixed signals in directional momentum. The MACD is implying some easing in positive drive as it glides slightly beneath its red trigger line. Meanwhile, both the upward pointing RSI and the fresh bullish charge of the stochastic oscillator are promoting additional hikes in the pair.

If renewed positive impetus off the supporting 50-day SMA intensifies, preliminary resistance could emanate from the falling 100-day SMA at 0.6805 and the adjacent red Tenkan-sen line at 0.6826. Moving higher, the bulls may struggle to overpower the fortified 0.6875-0.6924 resistance section. However, if this boundary fails to keep buyers at bay, the 0.6978 inside swing low could come under fire before the bulls pursue the 0.7051-0.7080 resistance border and the 0.7100 handle overhead.

On the other hand, if the 100-day SMA at 0.6805 curbs additional gains in the pair, sellers could encounter a tough support zone existing between the 50-day SMA at 0.6725 and the Ichimoku cloud’s upper surface at 0.6709, which is overlapped by a tentative uptrend line drawn from the 0.6528 trough. The price journey downwards is a congested one and even if the bears successfully dive below the cloud, they will need to also breach the adjoining support area between the 0.6665 and 0.6629 lows for negative developments to gain an advantage. A deeper price retracement that overruns the 0.6590 barrier too could shift traders’ focus towards the 0.6487-0.6528 support base that extends back to mid-July 2020.

Summarizing, NZDUSD may preserve its positive tone should the price persist above the 50-day SMA, the diagonal support and the Ichimoku cloud. Piloting above the 0.6875-0.6924 resistance obstacle could reinforce the bullish bearing of the pair, while a retreat below the 0.6629 low could hint that negative pressures are ramping up again.