NZD/USD Price Analysis: Extends gains towards psychological resistance at 0.6200
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- NZD/USD seems to test the immediate barrier at the 0.6200 level.
- Technical analysis indicates a momentum shift in an upward direction.
- The pair could find a support region around the major level of 0.6150 and the nine-day EMA at 0.6137.
NZD/USD continues to extend its winning streak that began on February 14 on the subdued US Dollar, which could be chalked up to the lower US Treasury yields. The NZD/USD pair rises to near 0.6190 during the Asian trading hours on Wednesday.
The NZD/USD pair may encounter immediate resistance near the psychological threshold of 0.6200. A decisive breakthrough above this psychological barrier could provide upward momentum, potentially leading the pair to explore levels around the 50.0% retracement level of 0.6229, followed by psychological resistance at 0.6250.
Technical analysis indicates a shift in momentum towards the upside. The Moving Average Convergence Divergence (MACD) line, positioned below the centerline, displays divergence above the signal line. Traders are likely to await confirmation from the MACD for a clear directional trend. Moreover, the 14-day Relative Strength Index (RSI), a lagging indicator, is above the 50 level, indicating a bullish sentiment for the NZD/USD pair.
On the downside, immediate support for the NZD/USD pair is anticipated at the key level of 0.6150. A breach below this level could exert downward pressure on the pair, potentially testing the nine-day Exponential Moving Average (EMA) at 0.6137 before approaching the psychological support level of 0.6100.
NZD/USD: Daily Chart
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