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.

Patricio Martín FXStreet

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.

GBP/USD extends weekly uptrend, trades above 1.3400

GBP/USD clings to moderate gains and holds above 1.3400 in the European session on Friday. The British Pound gains amid optimism on the UK government leadership transition and Bank of England rate hike bets. Meanwhile, the US Dollar loses ground on Middle East de-escalation and receding Fed rate hike expectations.

EUR/USD holds steady above 1.1400

EUR/USD struggles to gather bullish momentum on Friday and trades in a relatively tight range above 1.1400. In the absence of high-tier data releases, the uncertainty surrounding the US-Iran conflict causes investors to cling to a cautious stance and limits the pair's upside. Later in the day, the Federal Reserve will publish its Semiannual Monetary Policy Report.

Gold fails to build on recovery gains, seems vulnerable near $4,100

Gold struggles to build on Thursday's gains and fluctuates in a narrow channel, slightly above $4,100 on Friday. The uncertainty surrounding the Middle East conflict limits the precious metal's upside as investors wait for the Federal Reserve (Fed) to publish its Semiannual Monetary Policy Report.

Week ahead – US CPI and Warsh testimony to take centre stage, BoC eyed too

US inflation report and Warsh testimony to headline the week. Dollar to dominate amid slew of other US data and Mideast tensions. Amid fresh Iran escalation, China GDP to shed light on Q2 impact. Bank of Canada not expected to follow RBNZ with rate hike.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June Federal Open Market Committee meeting landed mid-round-trip, describing a world that had already stopped existing.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.