NZD/USD Price Analysis: Pairs regains ground, future depends on the 20-day SMA resistance hold
- NZD/USD gains momentum resuming back above the 20-day SMA.
- Bulls attempt to maintain control after Thursday's recovery transitioned the technical outlook towards a slightly bullish sentiment.
On Friday's session, the NZD/USD demonstrated renewed strength after recovering from a period of decline, resulting in a rise to around 0.6120.
Daily technical indicators present a cautiously optimistic picture. The Relative Strength Index (RSI) currently stands at 52 in positive territory. This rise signifies a strengthening bullish momentum, however, the market is still far from confirming a positive outlook. The Moving Average Convergence Divergence (MACD) prints decreasing red bars, indicative of slowing bearish momentum.
NZD/USD daily chart
On the upside, bulls will face a challenge at 0.6150 and 0.6200. Achieving a decisive close above these levels would signal a further establishment of control towards the bulls.
Downward, the first line of defense lies at the convergence of the 100 and 200-day SMAs at 0.6070. A bearish turn below this level would incline the outlook back to the bearish side, potentially triggering a corrective slide towards 0.6050 and then to the 0.6030 support levels.
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