NZD/USD Price Analysis: Bulls regain strength, technicals and daily movements signal more gains

The NZD/USD climbed to fresh highs since December.
The RSI stands deep in positive area and the MACD shows rising green bars supporting an overall bullish outlook.
If the bulls fail to conquer 0.6400, it might trigger a downward correction.

Patricio Martín FXStreet

On Friday, the NZD/USD pair continued its ascent from Thursday, adding 0.20%, reaching 0.6354 and continuing the bullish trend.

The technical indicators suggest that the buying pressure is likely to continue. The Relative Strength Index (RSI) is currently at 66, which is near the overbought area. This suggests that buying pressure is strong but that the movements might have become over-extended. The Moving Average Convergence Divergence (MACD) is also bullish, with the histogram rising and green.

NZD/USD daily chart

The overall outlook for the NZD/USD is bullish. The pair is trading above its key moving averages, and the technical indicators are regaining strength. Buyers seem to have hit a solid resistance at 0.6350, but buyers might be preparing to retest it. A break above could pave the way for more upside and the pair could test the 0.6400 level. On the other hand, a rejection at this level might trigger selling pressure and the bears might target the 0.6300 area and even more push the pair down to the 0.6250-0.6200. That being said, if the pair holds the 20-day Simple Moving Average (SMA) at 0.6220, the bullish outlook will remain intact.

Author

Patricio Martín

FXStreet

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

GBP/USD loses momentum, flirts with 1.3200

GBP/USD is struggling to maintain its positive bias on Thursday, retreating toward the 1.3200 region in response to the pick in the buying interest around the Greenback. That said, Cable remains under scrutiny as cautious market sentiment keeps investors focused on the US-Iran conflict and political effervescence in the UK.

EUR/USD trims gains, challenges 1.1400

EUR/USD now gives away part of its earlier advance, receding toward the 1.1400 contention zone on Thursday. Meanwhile, the pair’s recovery comes amid extra losses in the US Dollar, at the time when while investors continue to monitor developments in the Middle East and sentiment surrounding global technology stocks.

Gold remains bid and close to $4,100

Gold accelerates its recovery and approaches the key $4,000 mark per troy ounce at the end of the week, adding to Thursday’s advance. However, expectations for a hawkish Fed remain steady and keep the yellow metal’s potential upside contained.

Crypto Today: Bitcoin at $60,000, Ethereum at $1,500, and XRP at $1 face a make-or-break test

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) are trading in the red on Friday after three consecutive days of losses, testing their respective make-or-break support levels.

Week ahead – NFP report to challenge Dollar strength and the hawkish Fed

Dollar strength dominates markets, as the hawkish Fed overshadows geopolitics and lower oil prices. NFP week could drive September Fed hike expectations and boost market volatility. The euro lacks fresh bullish catalysts, all eyes on the preliminary inflation report and the ECB Forum.

Regime change: Inside Kevin Warsh's first move to make the Fed unreadable on purpose

The rate did not move. That was the least interesting thing about Kevin Warsh's first meeting in charge of the Fed. The FOMC held its benchmark at 3.50%-3.75% for the fourth straight meeting, exactly as priced, and then the new chair used his first press conference to dismantle the machinery the market has leaned on for a decade.