NZD/USD Price Analysis: Neutral outlook as bulls and bear fight for the lead
- The NZD/USD upside seems to be limited as buying and selling forces struggle for dominance.
- The RSI suggests a neutral outlook, while the MACD indicates declining selling pressure.
- A crossover between the 100 and 200-day SMA might propel the pair upwards.
The NZD/USD traded mostly flat on Friday’s session and failed to hold gain which took it to a high around 0.6260 as it then retreated to 0.6240.
The Relative Strength Index (RSI) is at 61, in positive territory with a flat slope. This indicates a neutral outlook for the pair, as buying pressure is flat. The Moving Average Convergence Divergence (MACD) histogram is red and decreasing, suggesting that selling pressure is declining.
NZD/USD daily chart
Key support levels include 0.6150, 0.6120, and 0.6100, while resistance levels are 0.6190, 0.6200, and 0.6230. A close above the 20-day SMA, currently at 0.6200, could signal further upward movement with the next target being at early September highs near 0.6300. In addition, traders should monitor the 0.6100 area as the 100 and 200-day SMAs are about to perform a bullish crossover. That could serve as a bullish confirmation and might trigger another upwards leg.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
