NZD/USD stabilizes above $0.565 (23.6% Fibonacci) as the Stochastic Oscillator and RSI 14 hint at a possible consolidation phase. In this scenario, the currency pair could target $0.571.
The NZD/USD trend outlook remains bearish below the 75-period SMA.
NZDUSD Technical Analysis – 23-December-2024
The New Zealand dollar has been trading bearishly against the American dollar since the beginning of October. As of this writing, the currency pair trades at approximately $0.565, having erased 1.10% of its recent losses.
The current uptick in momentum was expected because the RSI 14 and Stochastic hinted at an oversold market. However, the bullish signals are weak, and entering a buy order is not advisable.
On the other hand, going short is risky due to oversold signals. Therefore, traders and investors should wait for the prices to consolidate near the $0.571 resistance. This level can offer a decent demand zone for joining the NZD/USD downtrend.
- Also read: GBPJPY Support at 195.9 Could Spark Rally.
Please note that the market outlook remains bearish as long as the prices are below the 75-period simple moving average or the $0.575 resistance.