NZD/USD Price Analysis: Bulls gain traction ahead of key resistance zone

NZD/USD trades near the 0.5900 area, supported by bullish momentum into Monday’s Asian session
Short-term moving averages align to the upside, but MACD and 200-day SMA raise caution
Resistance eyed near 0.5890–0.5900, while support sits just above the 0.5700 handle

Patricio Martín FXStreet

The NZD/USD pair extended its upside during Monday’s session ahead of the Asian open, climbing near the 0.5900 zone and logging a daily gain of nearly 1%. The pair is advancing within the upper portion of its daily range, suggesting ongoing bullish traction despite lingering longer-term bearish risks.

Momentum remains mixed. The Relative Strength Index (RSI) stands neutral at 53.82, while the Stochastic RSI Fast and Awesome Oscillator are hovering in neutral territory.

On the supportive side, shorter-term moving averages offer a constructive backdrop. The 10-day EMA and SMA, at 0.56685 and 0.56688, respectively, point upward, alongside the 20-day SMA at 0.57156 and the 100-day SMA at 0.57072. These help validate the bullish narrative. However, the 200-day SMA at 0.58946 looms above as potential resistance and could cap further advances unless decisively breached.

Daily chart

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.