- NZD/USD has cleared the resistance of the 200-hour moving average.
- The easing US-China trade tensions and the technical setup favors further gains.
NZD/USD has found acceptance above the 200-hour moving average (MA) and could rise furher on the US-China trade optimism.
The currency pair is currently trading at 0.6344, representing 0.30% gains on the day. The 200-hour MA is now located at 0.6327. The Reserve Bank of New Zealand kept rates unchanged at 1.00% as expected.
The 50- and 100-hour MAs have produced a bullish crossover and the relative strength index is reporting bullish conditions with an above-50 print.
Further, the daily chart shows a bullish reversal candlestick setup – the pair created an inside bar candle on Monday and posted a strong follow-through on Tuesday.
All-in-all, the pair is likely to extend gains during the day ahead – more so due to the easing US-China trade tensions. Reports hit the wires a few minutes before press time that China has decided to support purchases of more US farm products, including soybeans and pork, by offering exemptions from additional tariffs as a goodwill gesture ahead next month's high-level trade talks.
Hourly chart
-637049773185597306.png)
Trend: Bullish
Technical levels
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