Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
NZD/USD Forecast: Rebound from Yearly Low Stalls Ahead of 50-Day SMA

NZD/USD Forecast: Rebound from Yearly Low Stalls Ahead of 50-Day SMA

NZD/USD appears to be stuck in a defined range as it gives back the advance following the Federal Reserve interest rate decision, but failure to push above the 50-Day SMA (0.6429) may lead to a test of the June 2020 low (0.6185) as the indicator continues to reflect a negative slope.


In turn, the range bound price action may end up being temporary as NZD/USD struggles to extend the series of higher highs and lows from late last week, and the rebound from the yearly low (0.6196) may unravel as the exchange rate seems to be reversing course ahead of the moving average.

NZD/USD Rate Daily Chart

Image of NZD/USD rate daily chart

Source: Trading View

NZD/USD trades in a narrow range after struggling to close above the Fibonacci overlap around 0.6370 (50% retracement) to 0.6430 (78.6% expansion), and it remains to be seen if the exchange rate will reverse course ahead of the like the price action seen at the start of the month.

The range bound price action looks poised to persist as NZD/USD manages to hold above the 0.6230 (61.8% retracement) to 0.6260 (38.2% expansion), but a break of the yearly low (0.6196) brings the June 2020 low (0.6185) back on the radar, with the next area of interest coming in around 0.6170 (50% expansion).

Will keep a close eye on the Relative Strength Index (RSI) as it struggles to retrace the decline from earlier this month, with a move below 30 in the oscillator likely to be accompanied by a decline in NZD/USD like the behavior seen earlier this year.

Traits of Successful Traders
Traits of Successful Traders
Recommended by David Song
Traits of Successful Traders
Get My Guide

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.