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Bears flirting with ascending trend-line/50-hour SMA confluence support

  • NZD/USD edged lower on Monday, albeit but showed some resilience at lower levels.
  • Mixed technical set-up warrants some caution before placing fresh directional bets.

The NZD/USD pair traded with a mild negative bias through the early North-American session, albeit the intraday downtick showed some resilience below 50-hour SMA, which coincides with one-week-old ascending trend-line.

A decisive break through the mentioned confluence support might be seen as a fresh trigger for bearish traders. Some follow-through weakness below the 0.6060 horizontal level will reinforce the negative outlook and prompt some fresh selling.

The pair then might accelerate the fall further towards the 0.6030-25 intermediate support en-route the key 0.60 psychological mark before bears eventually aim towards testing 200-hour SMA support near the 0.5975 region.

Meanwhile, technical indicators on the 1-hourly chart are still holding in the bullish territory. Moreover, oscillators on the daily chart have just started gaining positive traction and support prospects for the emergence of some dip-buying.

Hence, it will be prudent to wait for some strong follow-through selling before confirming that the recent strong recovery from 11-year lows might have already run out of the steam and positioning for any further near-term downfall.

NZD/USD 1-hourly chart

Technical levels to watch

 

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