- Pair breaks out of the 0.5900-0.5950 range, but momentum still remains weak.
- RSI and MACD show improving signs.
- Resistance at 0.6000 becomes the target as support shifts to 0.5950.
On Tuesday, the NZD/USD pair extended its gains, rising by 0.35% to 0.5960 and the daily chart shows some favorable signs for the bulls,
The daily chart shows that the Relative Strength Index (RSI) has climbed to 42, indicating a mounting buying pressure but the fact that it remains below 50 means that the selling pressure still dominates. The Moving Average Convergence Divergence (MACD) has turned green, confirming the bullish momentum.
The overall technical outlook for the NZD/USD remains neutral. The bulls have managed to break above a key resistance level, and the technical indicators are now turning in their favor. If the pair manages to hold above the 0.5950 support level, it could continue its upward trajectory toward the 0.6000 level where the 20-day Simple Moving Average (SMA) converges. A break above this level would confirm but if bulls fail, the selling pressure might resume.
NZD/USD Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains below 1.1100, faces challenges due to rising odds of ECB rate cut
EUR/USD attempts to recoup losses from the previous session, trading near 1.1090 during early Monday. However, the pair's upside may be capped, as recent eurozone inflation data have solidified expectations of a rate cut by the European Central Bank at upcoming Thursday's policy meeting.
GBP/USD sticks to intraday gains, remains below mid-1.3100s amid modest USD uptick
GBP/USD kicks off the new week on a positive note, though the upside seems limited. A weaker risk tone lends support to the safe-haven USD and could act as a headwind. Reviving BoE rate cut bets might further contribute to capping the upside for the GBP.
Gold is down but not out whilst 21-day SMA holds
Gold price is trading on the front foot just shy of the $2,500 threshold early Monday, consolidating Friday’s late rebound. Gold price sticks to its familiar range, as traders brace for the US Consumer Price Index data due later this week to confirm the size of the Federal Reserve interest rate cut next week.
Bitcoin risks further decline below $54,000
Bitcoin hovers around the $54,000 support level; a firm close below would suggest a decline ahead while Ethereum and Ripple prices approach their key resistance levels; rejection would suggest continuing the downward trend.
Week ahead: ECB poised to cut again, US CPI to get final say on size of Fed cut
ECB is expected to ease again, but will it be another ‘hawkish cut’? US CPI report will be the last inflation update before September FOMC. UK monthly data flurry begins with employment and GDP numbers.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.