As the world’s leading investment manager, I bring you the latest analysis on the NZD/USD pair, currently trading around 0.6160. The pair is on a winning streak for the fifth consecutive session, showcasing a strong upward trend within the ascending channel pattern on the daily chart.
The 14-day Relative Strength Index (RSI) is approaching the 70 level, signaling a potential for correction in the short term. This suggests that the pair may be overbought and could see a temporary pullback before resuming its upward trajectory.
Furthermore, the nine-day Exponential Moving Average (EMA) is above the 50-day EMA, indicating a bullish momentum in the short term. This supports the notion that the NZD/USD pair is likely to continue its upward movement.
Looking ahead, the immediate resistance for the pair is at 0.6190, followed by a two-month high of 0.6247. On the downside, the nine-day EMA at 0.6092 serves as crucial support. A break below this level could weaken the bullish bias and lead to a test of the 50-day EMA at 0.6045.
In the worst-case scenario, a breach below the lower boundary of the ascending channel at 0.6030 could signal a bearish trend, potentially pushing the pair towards the “throwback support” level at 0.5850.
Analysis Breakdown:
For the average investor, this means that the NZD/USD pair is currently in a strong uptrend, supported by technical indicators like the RSI and EMA. While there may be a short-term correction in sight, the overall outlook remains bullish.
If you’re looking to capitalize on this trend, consider setting your buy orders near the support levels mentioned and target the resistance levels for potential profits. Remember to always practice risk management and stay informed about market developments to make informed investment decisions.