The NZD/USD pair saw a positive movement during Friday’s session, reaching the 0.6125 level amid strong buyer influence in the market. However, signs of potential consolidation are emerging following the pair’s surge above the 100 and 200-day Simple Moving Averages (SMA). Daily indicators remain positive but somewhat flattened, with the RSI showing a strong positive trend despite retracting from overbought levels. The MACD also indicates a flattening momentum with flat green bars.
On the hourly chart, the RSI readings are on a declining trend, dropping from 64 to 57 throughout Friday. The MACD histogram also displays flat green bars, indicating a decrease in upward momentum. Despite this short-term dip, the NZD/USD pair remains in a strong bullish trend, trading above the SMAs of 20, 100, and 200 days on both short-term and long-term scales.
Looking ahead, a potential bullish crossover between the 200 and 100-day SMA at 0.6040 could further strengthen the bullish momentum in future trading sessions. The market structure of the NZD/USD pair suggests a need for some consolidation after the recent surge, but overall maintains its bullish tone. Traders should keep an eye on key indicators such as the RSI, MACD, and SMAs to gauge future price movements and potential entry points.
