NZD/USD surges to fresh almost four-month peak [Video]
|-
NZDUSD posts aggressive bullish rally.
-
Price penetrates 200-day SMA to the upside.
-
Technical signals are strongly bullish.
NZDUSD skyrocketed to a fresh almost four-month high above the 0.6200 round number earlier today. The strong rebound off the 0.5770 barrier took the market well above the short-term simple moving averages (SMAs) and more importantly above the 200-day SMA, which is a bullish sign.
Technically, the RSI indicator is travelling towards the overbought territory with strong momentum, while the MACD is stretching its positive momentum above its trigger and zero lines.
If buyers stay in play, the door will open for the 0.6270 resistance, taken from the peak on July 27 before rallying towards the 0.6410 barricade. A jump above this line could endorse the bullish scenario, shifting the long-term outlook to bullish.
Should the bears press the price below 0.6120, the 200-day SMA at 0.6090 may prevent an aggressive downfall towards the 20-day SMA at 0.6000 and the 50-day SMA, which coincides with the 0.5940 support level. If the latter gives way too, the decline could continue towards the 0.5855 support line.
In a nutshell, despite the latest exciting rebound in NZDUSD, there are some obstacles to consider before a real bullish trend reversal takes place. The 0.6270 mark is currently in a target ahead of the 0.6410 barrier.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.