The NZD/USD currency pair has recently broken its five-day winning streak and is currently trading around 0.6330 during the European session on Wednesday. Despite this slight pullback, the pair is still moving upward within an ascending channel pattern on the daily chart, which indicates a bullish bias for NZD/USD. Additionally, the 14-day Relative Strength Index (RSI) is above the 50 level, confirming the bullish trend remains intact. Although the RSI is slightly below the 70 mark, suggesting a possible consolidation period may be on the horizon.
The upper boundary of the ascending channel for NZD/USD is currently at the 0.6360 level, serving as immediate resistance for the pair. A breakthrough above this level could strengthen the bullish bias and support further upward movement towards the psychological level of 0.6400. On the downside, the NZD/USD pair may find support at the nine-day Exponential Moving Average (EMA) at the 0.6257 level, which coincides with the lower boundary of the ascending channel. A break below this channel could weaken the bullish sentiment and potentially push the pair towards its five-week low of 0.6106 level.
In terms of currency performance, the New Zealand Dollar (NZD) was the weakest against the Euro, as shown in the table displaying the percentage change of NZD against various major currencies. The heat map provides a visual representation of the percentage changes of major currencies against each other, with the base currency selected from the left column and the quote currency selected from the top row. This information can be useful for traders and investors looking to analyze currency movements and potential opportunities in the foreign exchange market.
Overall, the NZD/USD pair is currently facing resistance at the upper boundary of the ascending channel, but the bullish bias remains intact. Traders should keep an eye on key support and resistance levels for potential trading opportunities, while also monitoring the performance of the New Zealand Dollar against other major currencies for broader market insights. With a possible consolidation period on the horizon, it will be important to watch for any breakout or breakdown signals to confirm the next directional move for the NZD/USD pair.
