NZD/USD Price Analysis: Bulls take control as momentum shifts higher
- NZD/USD surged ahead of the Asian session, reclaiming ground near the 0.5720 zone after strong buying interest.
- The pair climbed above its 20-day SMA, signaling a potential shift in momentum as the RSI moved into positive territory.
NZD/USD extended its advance on Wednesday, rallying sharply and positioning itself above a key technical level. The pair was last seen trading near the 0.5720 region ahead of the Asian session, posting strong gains as buyers regained control. After a prolonged period of selling, momentum appears to be shifting, as technical indicators suggest a more constructive outlook.
The Relative Strength Index (RSI) has moved into positive territory, reflecting increasing bullish momentum, while the Moving Average Convergence Divergence (MACD) remains in negative territory but prints flat red bars, signaling a slowdown in bearish pressure. More importantly, the pair has successfully risen above its 20-day Simple Moving Average (SMA), a key level that had previously acted as resistance.
Looking ahead, immediate resistance lies around the 0.5750 zone, with a break above this level potentially opening the door for further upside toward 0.5800. On the downside, the 20-day SMA, now acting as support near 0.5680, will be crucial. If buyers manage to keep the pair above this threshold, the bullish outlook could remain intact.
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.
