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NZD/USD Price Analysis: Pair extends gains and settled around 0.5705, momentum builds

  • NZD/USD advances on Friday, holding above the key 0.5700 level.
  • The pair maintains its uptrend, supported by bullish technical indicators.
  • Focus remains on whether momentum can push the pair toward the next resistance level at 0.5750.

The NZD/USD pair continued its upward trajectory on Friday, rising by 0.44% to settle at 0.5705 and mantains its footing above its 20-day Simple Moving Average (SMA). This marks a steady continuation of the bullish momentum observed since mid-January, which was initiated by a breakout above the 0.5600 level. While minor pullbacks earlier in the week reflected potential profit-taking, the pair has maintained its position above 0.5700, signaling strong buying interest. On the negative side, the pair failed to sustain its intraday push near 0.5800.

Technical indicators align with the pair’s positive outlook. The Relative Strength Index (RSI) has climbed sharply to 63, firmly in positive territory, suggesting healthy upward momentum and room for further gains. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram shows flat green bars, indicating sustained buying pressure despite a temporary pause in acceleration.

Immediate resistance is now seen at 0.5750, a level that could act as a gateway for the pair to aim higher. On the downside, support is found at 0.5670, followed by a more robust floor around 0.5640. As long as the pair stays above these support levels, the bullish trajectory remains intact, with potential for further appreciation in the near term.

NZD/USD daily chart

Author

Patricio Martín

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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