Technical Analysis – NZDUSD posts new 2-month high
NZDUSD starts the day with strong upside momentum after RBNZ decision
MACD and RSI tick higher
NZDUSD had an aggressive bullish start at the beginning of the day, following the bounce off the 0.6080 support level and creating a spike towards a fresh two-month high of 0.6151 after the RBNZ’s interest rate decision. The market has been developing well above the penetrated descending trend line since May 14 as well as above the strong obstacle of 200-day simple moving average (SMA).
The technical oscillators are indicating a strong bullish bias in the near term as the RSI is heading north and is moving towards the 70 level, while the MACD is standing above its trigger and zero lines.
In the event of an upward resumption above the 0.6140 resistance level, the bulls might take a breather near the 0.6180 barrier before stretching to the critical resistance near the March 7 high of 0.6215.
Nevertheless, the pair has key levels underneath for protection against selling forces. The 0.6080 support ahead of the 200-day SMA at 0.6040 may halt declines. If the bears take the lead, the pair could slip towards the 20- and the 50-day SMAs at 0.6020 and 0.6000 respectively before testing the 0.5980 support.
In brief, NZDUSD is boosting its bullish attitude but a rally above today’s high is needed to confirm an upside tendency.Related Assets
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