NZDUSD’s draw back from the 13½-month high of 0.6789 appears to be restoring positive sentiment, after finding some traction around the 50-period period simple moving average (SMA) at 0.6687. The advancing SMAs and the approaching bullish crossover of the 200-period SMA by the 100-period one may re-establish confidence in the climb.
The Ichimoku lines seem to have paused their negative bearing, while the short-term oscillators display a pick-up in positive momentum. The MACD looks set on improving from the zero area, although having previously weakened below its red signal line and near to its neutral mark. The rising RSI and stochastic lines reflect confidence in the bounce, promoting further gains.
To the upside, immediate hindrance may develop from the Ichimoku lines around 0.6736 ahead of the highs from 0.6755 to 0.6771. Overtaking these obstacles, the 13½-month peak of 0.6789 may prevent the ascent from stretching towards the 0.6836 barrier from early April of 2019. If additional gains unfold, the pair may shoot to challenge the section of tops from 0.6923 to 0.6940, achieved in March of 2019.
If sellers retake the reins, initial support may arise from the 0.6687 low, where the 50-period SMA currently resides. Plunging downwards, the Ichimoku cloud and the 0.6650 border may come into play. Diving deeper though, the forthcoming bullish crossover between the 200- and 100-period SMAs, in the 0.6620 – 0.6630 zone, may attempt to dismiss the decline ahead of the 0.6600 trough.
Summarizing, the short-term bullish bias seems to retain its confidence above the 0.6687 mark while an optimist tone persists above the SMAs and 0.6600 trough.
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