Nzdusd Heads Towards Resistance

Nzdusd Heads Towards Resistance by Ashly Chole last updated on October 06, 2024

Nzd/Usd Heads Towards 0.6200 Resistance On Subdued Greenback

NZD/USD entered the bullish zone on 14th February and has since maintained that trend due to a weaker US Dollar. The greenback's weakness can be traced back to the US bond yields, which are under pressure.

For now, NZD/USD can be seen trading at 0.6190, with eyes set on the 0.6200 level, which is a significant resistance. According to technical indicators, a break of this level will invite more liquidity into the NZD/USD pair and could send it toward the 0.6250 level.

The overall trend in the NZD/USD is towards the upside for now. For starters, the MACD shows a bullish divergence, which means the odds favour the buyers. The RSI (14) is also printed above the 50 line, which is a sign of bullish presence.

Nzd/Usd Faces 0.6150 Reistance

However, if the NZD/USD changes direction and starts printing lower, the nearest resistance will be a 0.6150 handle. Any further selling pressure will send it to the 9/10 EMA on the daily chart, which is present near 0.6137. Continuation of the selling will mean more downside for the NZD and send it towards the 0.6100 support.

Most importantly, NZD/USD is trading comfortably above all the simple moving averages like the 20, 100, 200, & others. The 20 SMA on the NZD/USD (D1) is at 0.6111, while the SMA 50 is at 0.6182.

The 100 SMA and the 200 SMA, representing the long-term trend of NZD/USD, are at 0.6082 and 0.6077, respectively. Considering the NZD/USD is close to 0.6200, the NZD bulls have a lot of legroom to spare.

So even if the NZD/USD drops down around 100 pips, it will still be trading above the significant SMA lines (100 & and 200). Any considerable trend change in the pair means the NZD sellers must cross the 0.6100 - 0.6050 handle, as most SMA lines are present.

In that case, all the short & and long-term SMA lines will change their slope and act as dynamic resistance levels.