Nzdusd Renewed Bullish Interest

last updated on

Nzdusd Renewed Bullish Interest

NZD/USD Trades Near 0.6290 Amid Renewed Bullish Interest

NZD/USD has renewed its intraday highs as it is now trading near the 0.6290 range. The current bullish bias in the NZD/USD appeared when the pair bounced from its 1.5-month low.

If we look at the NZ/USD technicals, the RSI (14) is in the oversold territory, which is giving relief to the NZD bulls. Similarly, a corrective bounce has become highly likely, considering it was in the negative territory for so long.

0.6400 Resistance Is Up Ahead

According to experts, the bulls will have to cross the 0.6400 resistance level to convince the current trend. The 0.6400 level in NZD/USD was once a support which is now serving as a resistance after the NZD/USD made new lows.

In addition, there's also the 200 SMA and the descending trendline located near 0.6385 and 0.6365. Both these levels can pose a threat to the NZD bulls and may even reverse the course of NZD/USD.

But if the NZD/USD pair remains strong after crossing 0.6385, the next target will be the 0.6400 level. In our opinion, the 0.6400 level will become the validation point that can confirm whether the current bullish trend has any substance to it or not.

After that, the next target for the NZD/USD will be somewhere around 0.6540, which is also the monthly peak for the pair. On the other hand, a fallback from the current levels will lead us to the horizontal support located near 0.6250.

After that, the monthly low of NZD/USD is near 0.6190, and November's bottom is present at 0.6155. If these levels are reached, they will attract renewed attention from the sellers.

But for the long term, the current trend in the NZD/USD will remain bearish despite the recent bullish movements. The reason for this lies in the stronger USD and a weaker NZD in terms of interest rates & other economic factors.

Based on this information, the NZD/USD bulls will need to exercise caution as the current trend will be shortlived.

Trending Stories