NZD/USD traded higher today, after hitting support slightly above the 0.6575 barrier on Friday, which is marked by the low of December 12th, and the inside swing high of December 06th. Overall, the pair is printing higher highs and higher lows above the upside support line drawn from the low of November 12th, and thus, we would consider the short-term outlook to be positive.
If the bulls are strong enough to stay in the driver’s seat, we would expect them to aim for another test near the 0.6635 level, marked by the high of December 12th. If they manage to overcome that barrier, we may see them aiming for the 0.6665 zone, marked by the high of July 26th. If they don’t stop there either, we could experience extensions towards the 0.6695 barrier, marked by the inside swing lows of July 16th and 24th.
Looking at our short-term oscillators, we see that the RSI edged up after rebounding from slightly above 50, while the MACD, although below its trigger line, shows signs of bottoming within its positive territory.
On the downside, a dip below 0.6575 may signal the beginning of a downside corrective phase and may allow extensions towards the 0.6525 barrier, which is slightly above the lows of December 5th and 11th. Another break, below 0.6525, may extend the slide towards the 0.6505 zone, or the aforementioned upside support line drawn from the low of November 12th.
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