NZDUSD Recoups Some Of The Strong Losses

Technical analysis of Forex market

NZDUSD plummeted in a new one-month low around 0.7124 in the preceding sessions, however, it is currently trying to recoup some of the losses. The RSI is gaining some ground in the oversold territory, while the stochastic is getting ready to create a bullish crossover within the %K and %D lines.

If the market refuses to fall further, immediate resistance could come from 0.7150. An aggressive jump above this hurdle could open the way towards the 200-period SMA at 0.7215 ahead of the lower surface of the Ichimoku cloud at 0.7232, which coincides with the 20-period SMA. Above that, the 40-period SMA could halt bullish actions at 0.7252.

However, more downside pressures could see the 0.7115-0.7135 zone before tumbling to the 0.7065 support, taken from the inside swing high on April 8.

In brief, NZDUSD is creating a significant bearish move in the very short-term and only a jump above the 200-period SMA may shift the outlook back to positive.