- NZD/USD’s daily chart shows a golden cross of 50- and 200-day SMAs.
- Crossovers are lagging indicators and move above 0.66 is needed to revive a bullish trend.
NZD/USD is trading at 0.6558 at press time, representing a 0.43% gain on the day.
The pair has charted a golden crossover on the daily chart. The golden cross refers to the bullish cross of the 50- and 200-day simple moving averages (SMAs) is an indicator of a long-term bull market.
However, SMA studies are based on past data. As such, crossovers are not reliable indicators.
Besides, a close above 0.66, the high of the Doji candle created on July 9, is needed to revive the uptrend from the low of 0.55 observed in March. That would open the doors for 0.6756 (Dec. 31 high).
Meanwhile, on the lower side, 0.6503 (Tuesday’s low) is key support, which if breached, could cause more sellers to join the market, leading to a deeper drop to 0.64.