NZD/USD Price Analysis: Kiwi extends gains near 0.5800 zone but eyes 200-day SMA hurdle

NZD/USD trades near the 0.5800 zone after strong gains on Friday
Resistance aligns with 200-day SMA near 0.5895

Patricio Martín FXStreet

The NZD/USD pair extended its advance on Friday’s session with the pair seen trading near the 0.5800 zone after a 1.39% daily rise. This move positioned price mid-range between the day’s low of 0.56282 and high of 0.57656, reinforcing a bullish short-term momentum shift.

Still, the underlying trend is showing signs of strength, especially from the shorter-term averages. The 10-day exponential moving average at 0.56685 and the 10-day simple moving average at 0.56688 support the upward action. The 20-day SMA at 0.57156 and 100-day SMA at 0.57072 also lean bullish. However, traders should remain cautious of the 200-day SMA at 0.58946, which may cap further advances in the near term.

Looking ahead, support levels are seen at 0.57156, 0.57072, and 0.57068, while resistance stands at 0.57479, 0.58405, and the critical 0.58946. A daily close above the latter could cement a more sustained bullish phase.

Daily chart

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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