- The daily indicators hint at a strengthening bullish momentum.
- Hourly indicators are consolidating after hitting overbought conditions earlier in the session.
- If the buyers regain the 100-day SMA, the bearish trend will be threatened.
At the end of the week, the NZD/USD rallied to around 0.6050, up by 0.80%. Bullish momentum is picking up but the overall trend is still tilted in favor of the sellers. Further bullish validation is needed after the pair’s unsuccessful attempt to cross a crucial 100-day Simple Moving Average (SMA) during Friday’s session.
On the daily chart, the Relative Strength Index (RSI) shows a shift towards a stronger bullish trend. The last session recorded an RSI of 56, settling in positive territory. This solidifies a consistent increase in momentum in favor of buyers after being below 50 since early April.
NZD/USD daily chart
Examining the hourly chart, a similar viewpoint is observed. The RSI measures 62, but somewhat flattened after jumping above 70 earlier in the session. In addition, the Moving Average Convergence Divergence (MACD) histogram exhibited consistent red bars, signaling a potential deceleration in the bullish momentum.
NZD/USD hourly chart
Regarding the overall market trend, the NZD/USD is trading below the 100, and 200-day SMA which confirms the presence of significant downside pressure on the pair and challenges short-term buyers. Notably, the pair encountered rejection around the 100-day SMA at the 0.6100 level during Friday’s session, suggesting the buyers still need more traction to turn the outlook bullish. However, the break above the 20-day SMA definitely brightened the outlook for the short term.
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.
