NZD/USD Price Analysis: Bullish bias gains strength, eyeing 0.6280
- The NZD/USD pair has broken out of a sideways range, suggesting that bullish pressure is building.
- The RSI and MACD indicators are both rising, indicating growing buying momentum.
- A close above the 0.6280 resistance level could open the door to further gains.
The NZD/USD pair, which rose to 0.6270 in Monday's session, has broken out of a sideways range that had been in place for the past seven sessions. The pair has been consolidating between 0.6210 and 0.6240, but it has now broken above the upper bound of this range, suggesting that bullish pressure is building.
The Relative Strength Index (RSI) is at 63 near the overbought area and has a rising slope while the Moving Average Convergence Divergence (MACD) is green and rising, which also suggests that buying pressure is increasing.
NZD/USD daily chart
The overall outlook is bullish, as the pair is trading above its major moving averages. The pair has three formed support levels at 0.6200, 0.6180, and 0.6150 and it has formed resistance levels at 0.6280, 0.6300, and 0.6310. A close above the 0.6280 resistance level could open the door to further gains, with the next target being at early September highs near 0.6300.
That being said, bulls shouldn't focus entirely on looking upwards and must also consolidate their control above the 20-day Simple Moving Average (SMA). A loss of this level would worsen the Kiwi’s technical outlook.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
