In an impressive display of strength, the NZD/USD pair made significant gains in Friday’s session, climbing over 1% to reach 0.6050. This surge not only wiped out losses from the previous two sessions but also signaled a potential bullish trend in the market.
Technical indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are painting a positive picture for the pair. With the RSI hovering around 57 and the MACD showing rising green bars, it’s clear that the momentum is shifting towards the bulls. This suggests that there could be further upside potential for the NZD/USD pair.
Key Levels to Watch
Currently, the pair faces immediate resistance at 0.6060, with a breakout above this level potentially paving the way for a rally towards 0.6080 and 0.6100 (200-day SMA). On the downside, support is seen at 0.6030, and a breach below this level could lead to a deeper correction towards 0.5990 (20-day SMA) and 0.5970. Traders should closely monitor these key levels as they could trigger significant market movements.
For buyers, the focus now is on defending the 100-day SMA at 0.6040 and establishing strong support around this level, similar to what has been seen with the 20-day SMA.
Analysis and Conclusion
The recent surge in the NZD/USD pair indicates a growing bullish sentiment in the market, supported by technical indicators like the RSI and MACD. Traders should keep a close eye on key levels such as 0.6060 and 0.6030 for potential breakout opportunities.
Overall, the current market conditions suggest that the NZD/USD pair is poised for further gains, with the possibility of reaching levels around 0.6080 and 0.6100. However, it’s essential to remain vigilant and manage risk effectively in such volatile market environments.