NZD/USD Price Analysis: Bullish momentum picks up, buyers rejected at the 100-day SMA
- The daily indicators hint at a strengthening bullish momentum.
- Hourly indicators are consolidating after hitting overbought conditions earlier in the session.
- If the buyers regain the 100-day SMA, the bearish trend will be threatened.
At the end of the week, the NZD/USD rallied to around 0.6050, up by 0.80%. Bullish momentum is picking up but the overall trend is still tilted in favor of the sellers. Further bullish validation is needed after the pair's unsuccessful attempt to cross a crucial 100-day Simple Moving Average (SMA) during Friday's session.
On the daily chart, the Relative Strength Index (RSI) shows a shift towards a stronger bullish trend. The last session recorded an RSI of 56, settling in positive territory. This solidifies a consistent increase in momentum in favor of buyers after being below 50 since early April.
NZD/USD daily chart
Examining the hourly chart, a similar viewpoint is observed. The RSI measures 62, but somewhat flattened after jumping above 70 earlier in the session. In addition, the Moving Average Convergence Divergence (MACD) histogram exhibited consistent red bars, signaling a potential deceleration in the bullish momentum.
NZD/USD hourly chart
Regarding the overall market trend, the NZD/USD is trading below the 100, and 200-day SMA which confirms the presence of significant downside pressure on the pair and challenges short-term buyers. Notably, the pair encountered rejection around the 100-day SMA at the 0.6100 level during Friday’s session, suggesting the buyers still need more traction to turn the outlook bullish. However, the break above the 20-day SMA definitely brightened the outlook for the short term.
Reprinted from FXStreet,the copyright all reserved by the original author.
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