NZD/USD Price Analysis: Bulls push higher as pair eyes 100-day SMA
- NZD/USD surges more than 1% on Friday, reaching its highest level since late January.
- The pair extends gains above 0.5730, setting its sights on the 100-day SMA at 0.5825.
The NZD/USD pair rallied on Friday, jumping to 0.5735 and marking a fresh multi-week high. This bullish move reinforces the pair’s recovery from recent lows and suggests a potential shift in sentiment as buyers aim for higher levels. The next significant technical hurdle now lies at the 100-day Simple Moving Average (SMA) near 0.5825, a key level that could determine whether the rally has further room to extend.
Momentum indicators are turning more constructive. The Relative Strength Index (RSI) has climbed sharply to 64, reflecting increased buying pressure and indicating that the pair is approaching overbought conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram remains flat, hinting at a cautious uptrend that may need further confirmation before a sustained breakout.
Looking forward, if NZD/USD clears the 100-day SMA at 0.5825, the next resistance level emerges at 0.5860, a previous support-turned-resistance zone. On the downside, immediate support lies at 0.5700, with a deeper retracement potentially targeting 0.5660, where buyers may look to re-enter.
NZD/USD daily chart
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
