NZD/USD Price Analysis: Bullish momentum gains traction, 0.6040 eyed
- NZD/USD rises above 0.6000, with bullish momentum increasing.
- RSI rises above 50, and MACD shows increasing bullish momentum.
- 0.6040 (200-day SMA) resistance in focus, a break above could extend gains.
In Monday's session, the NZD/USD pair rose by 0.30% to 0.6015, continuing the bullish trend seen in recent sessions. The technical indicators suggest that the bulls have gained the upper hand and a further rise towards 0.6040 where the 200-day Simple Moving Average (SMA) converges is likely.
The Relative Strength Index (RSI) has risen above 50, indicating a shift towards bullish territory. The Moving Average Convergence Divergence (MACD) is also showing increasing bullish momentum, with rising green bars signaling increasing upside potential. This combination of technical indicators suggests that the buying pressure is increasing and that the bulls are in control.
NZD/USD daily chart
On the daily chart, the NZD/USD pair is facing immediate resistance at 0.6040. A break above this level and a consolidation above the 200-day Simple Moving Average (SMA) could open the door for a deeper rally toward 0.6100 and 0.6150. On the downside, support lies at 0.5970 (20-day SMA) and 0.5900. A break below 0.5900 could trigger a deeper pullback.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
