NZD/USD has recently retreated from a two-month high of 0.6140 and is currently trading around 0.6110 during the European session on Thursday. This pullback can be attributed to an upward correction in the US Dollar, possibly due to improved US Treasury yields. Despite this retracement, technical analysis indicates a confirmation of the bullish trend for the NZD/USD pair.
The momentum indicator Moving Average Convergence Divergence (MACD) suggests an upward trend as the MACD line is placed above the centerline and diverges above the signal line. Additionally, the 14-day Relative Strength Index (RSI) remains above the 50 level, further confirming the bullish sentiment for the pair.
Looking at the daily chart, the key resistance level for NZD/USD is seen at 0.6150. A breakout above this level could potentially push the pair towards the psychological level of 0.6200, followed by March’s high at 0.6218. On the downside, the psychological support level of 0.6100 is crucial, followed by the 23.6% Fibonacci retracement level at 0.6081. A breach below this level could lead the pair towards the 14-day Exponential Moving Average (EMA) at 0.6026.
Overall, the technical analysis suggests that NZD/USD is still in a bullish trend, with key levels to watch for in terms of resistance and support. Traders and investors will closely monitor developments in US Treasury yields and other market factors that could impact the pair’s movement in the coming days. The potential for further upside in the pair remains, depending on how it reacts to the key resistance and support levels outlined in the analysis.
