NZD/USD: Bullish reversal, next resistance at 0.6280 – OCBC

NZD/USD is up on the day. Moving away from the central bank and focusing on technical, economists at OCBC Bank see risks of bounce.

Falling wedge?

“Bearish momentum on daily chart intact while RSI is near oversold conditions. A falling wedge pattern appears to be forming and this is typically associated with a bullish reversal.”

“Support at 0.6170/85 levels (100, 200-DMAs), 0.6130 (38.2% fibo retracement of October low to Jan-Feb double top) and 0.6010 (50% fibo).”

“Resistance at 0.6280 (23.6% fibo), 0.6360 (21, 50-DMAs).”