NZD/USD Price Analysis: Could we see an extension of the trend next week?
- NZD/USD is trading 0.39% higher on the session despite thin holiday trade.
- There is a key resistance zone on the upside that the bulls need to challenge.
NZD/USD daily chart
Despite very thin volume on Friday (US participants are off for Independence day) NZD/USD has moved higher by 0.39%. NZD/USD is a currency that performs well when the risk environment is positive and over the week stocks have performed well.
Looking at the chart below, the bulls will have to break past the black horizontal line at 0.6580 to keep this impressive trend going. If this feat is achieved then the purple resistance line at 0.6756 could be hit next.
On the downside, the red support zone is the area to watch if you have a bearish bias. 0.64 has been a tough nut to crack and it seems an event-driven move would be needed to break the zone.
The MACD indicator is slightly mixed at the moment. The histogram is in the red and the signal lines are above the mid-point. This signal line is a better gauge of trend and if the histogram turns green again it could be a great long signal.
The Relative Strength Index looks to be heading to the positive overbought zone again. Many people think this means that the price has to pullback. This is sometimes the case but more often than not after a brief move lower the trend normally continues in the direction if the break.
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Additional levels
Author
Rajan Dhall, MSTA
FX Daily
Rajan Dhall is an experienced market analyst, who has been trading professionally since 2007 managing various funds producing exceptional returns.
