- The NZD / USD again finds decent support near the 0.60 confluence support.
- The implementation deserves some caution before placing aggressive directional bets.
NZD / USD managed to rebound by more than 50 pips from the key psychological mark of 0.60 and recover much of the post-RBNZ losses in multi-day lows. The level mentioned marks an important confluence support including SMA at 50 days and the lower end of an ascending trend channel extending from the end of March.
This should now act as a key point for short-term traders, as attention is now focused on the Fed Speech by President Jerome Powell on current economic problems. Meanwhile, the mixed technical indicators on the hourly / daily charts warrant some caution for aggressive traders and before positioning themselves in the short term direction of the pair.
Therefore, it will be prudent to wait for solid follow-up purchases, possibly beyond the 0.6075-80 region, to confirm any short-term upside bias.
On the other hand, a lasting breakthrough in support for the 0.60 confluence could now be seen as a new trigger for bearish traders and paving the way for a further decline. The pair could then become vulnerable to further accelerate the slide towards the intermediate support of 0.5945 en route to the next major support near the bar of 0.5900.