NZD/USD Price Analysis: Bulls reclaim ground but momentum flattens
- The NZD/USD is currently in a consolidation phase following last week's rally.
- The pair is building support around the 0.6050-0.6100 area.
- Indicators are deep in the positive area on the daily chart and hourly indicators decelerated.
The NZD/USD pair witnessed a rise, trading at a high of 0.6160 before stabilizing at 0.6145 as the pair entered a consolidation phase.
In the daily chart, the Relative Strength Index (RSI) improved with the latest readings at 64, suggesting increased buying pressure. This rise in the RSI matches with the steady presence of green bars on the Moving Average Convergence Divergence (MACD), hinting at an ongoing upward trend.
NZD/USD daily chart
Zooming in, hourly indicators remain in positive area but somewhat flattened with the RSI at 58 and the MACD printing flat green bars.
NZD/USD hourly chart
Additionally, the NZD/USD continues its strong upward trend, with the convergence of its 20, 100, and 200-day Simple Moving Averages (SMAs) in the 0.6050-0.6100 region providing strong support for the pair. Despite any data that may indicate a stabilizing NZD, the technical indicators reflect ongoing bullish activity. Any movements below this convergence could be considered a sell signal.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
