NZD/USD Price Analysis: Buyers gather momentum and challenge the 200-day SMA
- The daily RSI for the NZD/USD reveals strong buying momentum, underpinned by rising MACD green bars.
- Despite slightly weakening green bars on the hourly MACD, the RSI indicates steadfast buying traction near 70.
- If buyers regain the 200-day SMA, the outlook will turn positive for the pair.
The NZD/USD pair is showcasing a strong performance, rising to 0.6032 on Thursday. Despite this, an observed stagnation in hourly advances warrants attention for any short-term shift as indicators reach overbought conditions and buyers might take profits.
On the daily chart, the Relative Strength Index (RSI) shows positive momentum. Its latest reading is in positive territory. This, along with the rising green bars of the Moving Average Convergence Divergence (MACD), indicates a market predominately dominated by buyers.
NZD/USD daily chart
Turning attention to the hourly chart, the RSI still indicates strong buyer domination, hovering around 66. However, the MACD shows decreasing green bars, which could indicate slightly weaker bullish momentum compared to the daily chart. Traders shouldn’t take off the table a slight technical correction ahead of the Asian session.
NZD/USD hourly chart
Regarding the Simple Moving Averages (SMA) the pair holds above the 20-day SMA but remains below the 100 and 200-day. However, buyers are anticipated to challenge the 200-day SMA at the critical level of 0.6040 which if surpassed, could usher in stronger bullish prospects for the NZD/USD. On the contrary, sellers might step in again if the pair lacks the strength to reconquer the mentioned resistance.
Reprinted from FXStreet,the copyright all reserved by the original author.
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