NZDUSD Increases above 0.6500 in Short-term Bounce

Technical analysis of Forex market

NZDUSD is ticking higher above 0.6500 again after the bounce off the two-year low of 0.6214. The technical indicators are showing more positive signs, as the MACD is advancing above its trigger line in the negative region, while the RSI is pointing upwards after the jump above the neutral threshold of 50. Also, the pair advanced above its 20-day simple moving average (SMA), confirming the recent positive bias in the short-term.

A move to the upside may meet resistance around 0.6570, this being a top from the previous high on May 5. Slightly above this level, the 40-day SMA at 0.6585 and the 0.6725 level could act as an additional barrier in case of stronger bullish movement.

On the other hand, immediate support to further declines may be taking place around the two-year low of 0.6214 ahead of steeper declines until the 0.5920, registered in May 2020.

Overall, in the short-term outlook, the market is bullish; however, in a longer timeframe, NZDUSD is still negative and only a jump above the 200-day SMA may change this view.