NZD/USD Price Analysis: Bulls return, pair recovers below week's highs

The NZD/USD pair recovered on Thursday, settling at 0.6330.
The RSI and MACD indicators are turning bullish, supporting the prospect of further gains.
Buyers cleared most of Wednesday’s losses.

Patricio Martín FXStreet

On Thursday, the NZD/USD pair recovered from Wednesday's losses, gaining by 0.95% and settling at 0.6330. The pair is moving in a sideways trading pattern, indicating indecision between the bulls and bears. That being said,bulls seem to have an advantage.

The technical indicators suggest that the buying pressure behind NZD/USD is increasing. The Relative Strength Index (RSI) is rising above 50 the Moving Average Convergence Divergence (MACD) histogram prints rising green bars, also giving arguments to the buyers.

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 seem to be gearing up for a retest. In that sense a break above could pave the way for for upside and the pair could test the 0.6400 level. On the other hand, if the pair runs out of steam, the 0.6300 area can act as a barrier to selling pressure.

Author

Patricio Martín

FXStreet

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

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