NZD/USD Price Analysis: Bears weaken as bullish momentum hints at possible recovery

The daily chart reveals a shift in NZD/USD from a bearish to a bullish short-term outlook.
Hourly chart indicators echo the bullish trend visible in the daily analysis.
Buyers will need to claim dominance over key SMAs to make strides in the market.

Patricio Martín FXStreet

The NZD/USD rose to around 0.6058, reflecting a 0.41% gain on Tuesday's session. Despite the pair experiencing a momentum shift from bearish to bullish, it is positioned beneath key Simple Moving Averages (SMAs), hinting at a possible extended downtrend.

On the daily chart, the Relative Strength Index (RSI) rose from negative territory and is now within the positive zone. This indicates a reversal from a bearish trend to a bullish short-term outlook. Further strengthening that, the Moving Average Convergence Divergence (MACD) histogram prints rising green bars for the first time since mid-March, signaling a potential upward momentum.

NZD/USD daily chart

Turning to the hourly chart, the RSI is on the rise, mirroring the trend found on the daily chart. The MACD histogram on the hourly scale is relatively flat but displays red bars, indicating a mild negative momentum, probably hinting that the bulls are taking profits after the RSI hit overbought conditions earlier in the session.

NZD/USD hourly chart

Regarding the overall trend, the NZD/USD has demonstrated a significant jump above its 20-day Simple Moving Average (SMA), suggesting a bullish shift in the short-term outlook. This development indicates that the pair has found some near-term buying strength. However, it continues to be positioned below both the 100 and 200-day SMA, implying a long-term bearish stance. Further to this, the pair was recently rejected by its 100-day SMA at 0.6138, suggesting a reinforced resistance at this level. A sustained move above this level would be required to alter the overall bearish bias.

NZD/USD

Overview
Today last price	0.6059
Today Daily Change	0.0027
Today Daily Change %	0.45
Today daily open	0.6032

Trends
Daily SMA20	0.6036
Daily SMA50	0.6091
Daily SMA100	0.6138
Daily SMA200	0.6068

Levels
Previous Daily High	0.604
Previous Daily Low	0.6
Previous Weekly High	0.6047
Previous Weekly Low	0.5939
Previous Monthly High	0.6218
Previous Monthly Low	0.5956
Daily Fibonacci 38.2%	0.6025
Daily Fibonacci 61.8%	0.6015
Daily Pivot Point S1	0.6008
Daily Pivot Point S2	0.5984
Daily Pivot Point S3	0.5968
Daily Pivot Point R1	0.6048
Daily Pivot Point R2	0.6064
Daily Pivot Point R3	0.6088

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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