- Kiwi bulls are firmer above 61.8% Fibo retracement at 0.6957.
- Driving with the upper Bollinger Band (20, 2) adds to the upside filters.
- The RSI (14) has climbed above 60.00 and has set a bullish stage for the asset.
The NZD/USD pair has witnessed a strong upside move after hitting a low of 0.6728 last week. This week the major has extended its gains after overstepping March 7 highs at 0.6926 and has registered fresh yearly highs at 0.6989.
On the daily scale, kiwi bulls are holding above 61.8% Fibonacci retracement (placed from 21 October 2021 high at 0.7219 to January 28 low at 0.6529) at 0.6957. The trendline placed from January 28 low at 0.6529, adjoining the February 14 low at 0.6593, and February 24 low at 0.6630 will continue to provide cushion to the pair.
It is worth noting that the asset is holding the upper band of Bollinger Bands (20, 2), which signals the continuation of a bullish rally.
The Relative Strength Index (RSI) (14) has registered a fresh high at 68.18 which signals more upside ahead. The oscillator is not showing any sign of divergence and an overbought situation.
Should the asset violate Wednesday’s high at 0.6989, the major will be driven towards 18 November 2021 high at 0.7054. Breach of the latter will send the kiwi bulls to the round level at 0.7100.
On the flip side, if the asset slips below weekly lows at 0.6864, bears may get the driving seat and the asset may fall near 20-period Exponential Moving Average (EMA) at 0.6840, followed by 38.2% Fibo retracement at 0.6790.
NZD/USD daily chart
-637836797385703366.png)
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays near 1.0400 in thin holiday trading
EUR/USD trades with mild losses near 1.0400 on Tuesday. The expectation that the US Federal Reserve will deliver fewer rate cuts in 2025 provides some support for the US Dollar. Trading volumes are likely to remain low heading into the Christmas break.
GBP/USD struggles to find direction, holds steady near 1.2550
GBP/USD consolidates in a range at around 1.2550 on Tuesday after closing in negative territory on Monday. The US Dollar preserves its strength and makes it difficult for the pair to gain traction as trading conditions thin out on Christmas Eve.
Gold holds above $2,600, bulls non-committed on hawkish Fed outlook
Gold trades in a narrow channel above $2,600 on Tuesday, albeit lacking strong follow-through buying. Geopolitical tensions and trade war fears lend support to the safe-haven XAU/USD, while the Fed’s hawkish shift acts as a tailwind for the USD and caps the precious metal.
IRS says crypto staking should be taxed in response to lawsuit
In a filing on Monday, the US International Revenue Service stated that the rewards gotten from staking cryptocurrencies should be taxed, responding to a lawsuit from couple Joshua and Jessica Jarrett.
2025 outlook: What is next for developed economies and currencies?
As the door closes in 2024, and while the year feels like it has passed in the blink of an eye, a lot has happened. If I had to summarise it all in four words, it would be: ‘a year of surprises’.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.