NZD/USD Price Analysis: Bulls assert dominance, closes its best week of 2024
- The daily chart reveals a strong bullish sentiment with indicators deep in positive territory.
- Hourly indicators show a flattening buying traction but remain positive.
- The pair closed its best week since November 2023.
In Friday's session, the NZD/USD rose to the 0.6137 level, demonstrating a strong bullish trend. After closing above its main Simple Moving Averages (SMAs) of 20,100 and 200 days, the pair secured its best week since late 2023.
On the daily chart, the Relative Strength Index (RSI) reveals a positive trend, moving from below 60 and nearing the 70 mark. This indicates that the NZD/USD pair is accumulating strength, demonstrating bullish pressure in the recent sessions. Concurrently, the Moving Average Convergence Divergence (MACD) prints green bars, showing steady buying traction.
NZD/USD daily chart
The hourly RSI readings exhibit a consistent positive trend over the recent hours, but was seen finishing at 57.17 but pointing downwards. The hourly MACD chart supports this view, with gradually diminishing green bars indicating a slowing positive momentum as investors take profits.
NZD/USD hourly chart
In conclusion, the NZD/USD is in a robust technical position, showing short and long-term bullish signals on the daily and short-term charts. Although the RSI shows that the pair is approaching overbought conditions and the hourly indicators show dwindling positive momentum, the pair retains its position above vital SMAs. Traders shouldn’t take off the table further corrective movements as investors might continue taking profits.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
