NZD/USD Price Analysis: Pairs regains ground, future depends on the 20-day SMA resistance hold
- NZD/USD gains momentum resuming back above the 20-day SMA.
- Bulls attempt to maintain control after Thursday's recovery transitioned the technical outlook towards a slightly bullish sentiment.
On Friday's session, the NZD/USD demonstrated renewed strength after recovering from a period of decline, resulting in a rise to around 0.6120.
Daily technical indicators present a cautiously optimistic picture. The Relative Strength Index (RSI) currently stands at 52 in positive territory. This rise signifies a strengthening bullish momentum, however, the market is still far from confirming a positive outlook. The Moving Average Convergence Divergence (MACD) prints decreasing red bars, indicative of slowing bearish momentum.
NZD/USD daily chart
On the upside, bulls will face a challenge at 0.6150 and 0.6200. Achieving a decisive close above these levels would signal a further establishment of control towards the bulls.
Downward, the first line of defense lies at the convergence of the 100 and 200-day SMAs at 0.6070. A bearish turn below this level would incline the outlook back to the bearish side, potentially triggering a corrective slide towards 0.6050 and then to the 0.6030 support levels.
Author
Patricio Martín
FXStreet
Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.
