NZD/USD Price Analysis: Extends its gains near 0.6230 ahead of US housing data
- NZD/USD gains ground despite downbeat trade data from New Zealand.
- Technical indicators suggest bullish sentiment to revisit a five-month high at 0.6251.
- The psychological level at 0.6200 could act as key support followed by the nine-day EMA at 0.6186.
NZD/USD continues its winning streak that began on December 11 despite disappointing trade figures from New Zealand. The NZD/USD rises around 0.6230 during the European hours on Tuesday.
The Trade Balance NZD (MoM) data for November, as reported by Statistics New Zealand, revealed a trade deficit of $1,234 million, slightly higher than the expected deficit of $1,200 million. On a year-on-year basis, the deficit stood at $13.87 billion, less than the anticipated deficit of $14.82 billion.
The 14-day Relative Strength Index (RSI) is above the 50 level, signaling a bullish sentiment. This suggests that the NZD/USD pair could potentially retest the 0.6250 major level, in line with the five-month high at 0.6251. If the pair manages to break through this resistance area, it may find support to explore the psychological region near 0.6300.
Additionally, the positive positioning of the Moving Average Convergence Divergence (MACD) line above both the centerline and the signal line could serve as confirmation of bullish momentum in the market.
On the downside, a break below the psychological support level of 0.6200 could push the NZD/USD pair to fall to the area near the nine-day Exponential Moving Average (EMA) at 0.6186 level followed by the 23.6% Fibonacci retracement at 0.6165 before the major support at 0.6150.
NZD/USD: Daily Chart:
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Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
