NZDUSD finally sees some rebound. Some short term positive technicals.

Technical Analysis

The NZDUSD is seeing some technical rebound after reaching the lowest level since March 2020.

Looking at the hourly chart above, the price fell below a downward sloping trendline on its way to a new low going back to March 2020 at 0.58029. However the price has rebounded back to the upside and in the process moved back above the broken trend lines. Also of note is that the corrective move back down retested those trendlines and found support buyers (at 0.58397). If the price can stay above those trendlines, it will give the buyers some comfort. However there is work to do.

Staying on the hourly chart the falling 100 hour moving average comes in at 0.5913. There is also a swing area between 0.59095 and 0.59208 (see red numbered circles). That level is also a key level on the weekly chart.

Looking at the weekly chart, the sharp decline in the NZDUSD price has seen a modest rebound. However, looking back to April and May 2020, the price remains below the swing low area between 0.5909 and 0.5921. The price is also below a downward sloping trendline on the weekly chart which cuts across within that area. The buyers would need to get back above that area and back above that broken trend line to increase the short-term bullish corrective bias

Overall, there is some positives from the hourly chart in the NZDUSD. As long as the price can remain above the trendlines 0.58397 (and moving lower), dip buyers can hope for more corrective price action.

However there is a lot of work to do, and the longer term chart tells that story. The downside trend remains bearish below the 0.5921 area. Until the price can move above the swing area between 0.5909 at 0.5921, and above the broken trend line on the weekly chart within that same area, the sellers are winning, and the buyers are losing.

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