The NZD/USD rose to 0.5961, displaying a rally of 0.56% and jumping above the key short-term 20-day Simple Moving Average (SMA) on Thursday which now indicates a potential bullish bias. However, the broader trend remains bearish. With the intense increase in buying traction on an hourly scale, buyers might take some profits ahead of the Asian session.
On the daily chart, the Relative Strength Index (RSI) stands just above negative territory threshold, hinting at a slight uptrend. However, this inconclusive signal requires further validation to be considered a bullish flag.
On the hourly chart, the RSI is at 66 slightly down after hitting the overbought threshold. This indicates a stronger short-term buying momentum but that the pair may start to consolidate ahead of Friday’s session. Furthermore, the Moving Average Convergence Divergence (MACD) presents green bars, showing positive momentum.
Considering broader market movements, the NZD/USD’s jump above the 20-day Simple Moving Average (SMA), signify a potential short-term upward trend. However, the pair still lingers below the 100 and 200-day SMA, implying sustained selling pressure and a bearish market bias long-term. That being said, bulls are making arguments to be considered seriously and will start to set their sight at the 100-day SMA at 0.6100.