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27/08/24
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NZD/USD Eyes Seven-Month High Amid Bullish Momentum
The NZD/USD currency pair is poised to approach its seven-month high of 0.6247, reflecting a prevailing bullish momentum. Currently, the pair is trading near 0.6220, recovering from minor losses experienced in the previous session. The overall trend on the daily chart indicates an upward movement, indicating that the pair remains within the upper boundary of an ascending channel, reinforcing positive sentiment.
A key indicator of this bullish outlook is the positioning of the nine-day Exponential Moving Average (EMA), which sits above the 50-day EMA. This configuration suggests that short-term upward momentum is likely to persist. Additionally, the 14-day Relative Strength Index (RSI) is hovering just below the critical 70 level. Should the RSI exceed this level, it could indicate that the pair is nearing an overbought condition, potentially leading to a short-term correction.
Resistance levels for the NZD/USD pair appear to be around 0.6230, which coincides with the upper boundary of the ascending channel. Should the pair successfully navigate this barrier, it may eventually reach the seven-month peak of 0.6247, achieved on August 21. Conversely, on the downside, the nine-day EMA at 0.6149 represents immediate support. A decline below this level could challenge the bullish sentiment and prompt testing of the channel’s lower boundary at 0.6070, followed by the 50-day EMA at 0.6064.
If the pair breaches the latter support, it could lead to a shift in sentiment towards bearish, creating downward pressure that may drive the NZD/USD toward the “throwback support” area around the 0.5850 level. As the market evolves, traders will be closely monitoring these indicators to gauge potential movements in the currency pair.
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