- NZD/USD was seen trading around the 0.5825 zone ahead of the Asian session, extending its bullish momentum.
- The pair surged past the 20-day SMA, though traders should monitor 0.5700, where a bearish crossover between the 20 and 100-day SMAs could develop.
- Immediate resistance stands near 0.5850, while initial support lies around 0.5750, with a critical level at 0.5700.
NZD/USD continued its strong performance on Monday ahead of the Asian session, gaining traction and trading near the 0.5825 area. Bulls propelled the pair higher, breaching the 20-day Simple Moving Average (SMA) and reinforcing the bullish outlook. However, market participants should remain cautious as a potential bearish crossover between the 20 and 100-day SMAs around 0.5700 could threaten the rally.
The Relative Strength Index (RSI) has risen sharply into near-overbought territory, currently hovering around 68, suggesting strong bullish momentum. Additionally, the Moving Average Convergence Divergence (MACD) is printing rising green bars, signaling increasing buyer strength. While the technical picture remains favorable for further gains, traders should watch for potential signs of exhaustion at current levels.
On the upside, immediate resistance is seen at 0.5850, with a breakout above this level opening the door to 0.5900. Meanwhile, initial support lies at 0.5750, followed by a crucial floor at 0.5700, where a bearish SMA crossover could add downward pressure. If the pair slips below this threshold, the outlook could shift in favor of the bears.
NZD/USD daily chart
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
Gold hits new all-time highs above $3,020, Trump-Putin call eyed
Gold price is printing fresh record highs above $3,020 on Tuesday as Middle East tensions intensify. Israel resumed military operations against Hamas in Gaza after the group rejected US proposals for extending ceasefire. All eyes now remain on the Trump-Putin call.
EUR/USD retreats from fresh 2025 highs, flirts with 1.0900
EUR/USD retreats from fresh record highs and approaches 1.0900 on Tuesday, helped by encouraging US data. Optimism around the German vote on the spending plan and Trump-Putin talks underpin the positive mood despite escalating Middle East tensions.
GBP/USD edges sharply lower after testing the 1.3000 mark
GBP/USD retreats sharply after testing the 1.3000 threshold, now hovering around 1.2950. The US Dollar made a strong comeback early in the American session, helped by upbeat local data and despite mounting geopolitical tensions in the Middle East. Focus also on Russia-Ukraine headlines.
Trump-Putin talks raise hopes of a ceasefire – Middle East risk returns
The prospective end to the Russia-Ukraine war has traders excited for a more positive growth outlook in Europe going forward, with heavily industrialised nations such as Germany having suffered under the weight of elevated energy costs in recent years.
Tariff wars are stories that usually end badly
In a 1933 article on national self-sufficiency1, British economist John Maynard Keynes advised “those who seek to disembarrass a country from its entanglements” to be “very slow and wary” and illustrated his point with the following image: “It should not be a matter of tearing up roots but of slowly training a plant to grow in a different direction”.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.