GBP/NZD traded higher on Thursday, breaking above Wednesday’s high of 1.9525, and also overcoming the 1.9600 level. That said, the advance was paused near the 1.9640 barrier, marked by the high of June 11th. Overall, the pair has been trading in a rally mode, above a steep upside line, since July 23rd, and thus, we would consider the near-term outlook to be positive.
A clear and decisive break above 1.9640 may allow the bulls to target the 1.9725 barrier, marked by the high of June 3rd, the break of which may set the stage for the 1.9770 zone, which provided decent support between May 27th and 29th. Slightly higher lies the 1.9820 hurdle, which could also get tested. That level marks the inside swing low of June 1st.
Turning our gaze to our short-term momentum studies, we see that the RSI likes well above 70, but has just ticked down, while the MACD lies above both its zero and trigger lines. Both indicators detect strong upside speed, but the tick down in the RSI suggests that a corrective setback may be in the works before the next leg north, perhaps for the rate to challenge the 1.9525 level as a support this time.
In order to start examining whether the bears have stolen the bulls’ swords, we would like to see a strong break below 1.9450. The rate would already be below the aforementioned steep upside line, and the bears may target yesterday’s low of 1.9390. Another break, below 1.9390, could see scope for more negative extensions, perhaps towards the 1.9295 obstacle, defined as a support by Monday’s inside swing high.
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with the Company. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.
Copyright 2020 JFD Group Ltd.