Technical Analysis – NZDUSD bounces off 5-month low

• NZDUSD posts some gains after negative days

• Immediate resistance at 0.5940

• Stochastics and RSI tick higher

NZDUSD rebounded off the five-month low of 0.5858 after three straight negative days with the technical oscillators confirming that an upside recovery may be on the cards. The RSI is pointing north near the 30 level, while the stochastic posted a bullish crossover within its %K and %D lines.

Immediate resistance is coming from the 0.5940 barrier ahead of the 20-day simple moving average (SMA) at 0.5980. If traders continue to buy the pair, then the 200-day SMA at 0.6050 and the 50-day SMA at 0.6065, which stands near the medium-term downtrend line may halt bullish actions.

Alternatively, a successful decline beneath the five-month low could send the price to the next bottom of 0.5770, registered back on October 26.

To sum up, NZDUSD has been trading within a descending tendency since the end of December and only a jump above the downtrend line may switch the bias to a more neutral one.