Is a corrective rally on the cards? The 28 February NZDUSD Technical Outlook has shown that corrective rally is likely due to bullish price RSI divergence on 1-hour chart.
28 February, GKFX – The NZD/USD has recovered from the 19-day low of 0.7220 and could move above the 50-day moving average (MA) of 0.7245, given the relative strength index (RSI) on the 1-hour chart has begun to diverge in favor of the NZD bulls.
As of writing, the pair is trading at 0.7230. China NBS manufacturing PMI released earlier today showed the activity slowed more than expected to the weakest in over 1-1/2 years. Further, the service sector slowed to the lowest since October last year in February.
Reason for the slowdown
But the slowdown in the activity has been associated with disruptions caused by the Lunar New Year holidays, meaning the situation will likely normalize in the months ahead. Hence, the NZD has seen little or no action post-China data release.
Ahead in the day, the spot may see renewed selling pressure if the European equities respond negatively to Powell’spositive comments on the US economy.
28 February NZDUSD Technical Outlook
A break above 0.7245 (50-day MA) would open up upside towards 0.7279 (5-day MA)and 0.73 (psychological level). On the other hand, a violation at 0.7220 (session low) would expose 0.7198 (Feb. 9 low) and 0.7176 (Feb. 8 low).
This article 28 February NZDUSD Technical Outlook was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.
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