Market Analysis: NZD/USD CorrectsMarket Analysis: NZD/USD Corrects
NZD/USD is also rising and might aim for more gains above 0.5850.
Important Takeaways for NZD/USD Analysis Today
- NZD/USD is consolidating gains above the 0.5800 handle.
- There is a key bullish flag pattern forming with resistance at 0.5840 on the hourly chart of NZD/USD.
NZD/USD Technical Analysis
On the hourly chart of NZD/USD, the pair started a fresh increase from 0.5735. The New Zealand Dollar broke the 0.5780 barrier to start the recent rally against the US Dollar.
The pair settled above 0.5800 and the 50-hour simple moving average. It tested 0.5850 and is currently consolidating gains. There was a minor pullback below 0.5830. The NZD/USD chart shows that the RSI is now just above 50.
On the downside, immediate support is near the 0.5795 level and the 50% Fib retracement level of the upward move from the 0.5736 swing low to the 0.5853 high.
The first key zone for the bulls sits at 0.5780 and the 61.8% Fib retracement. The next key level is 0.5760. If there is a downside break below 0.5760, the pair might slide toward 0.5735. Any more losses could lead NZD/USD into a bearish zone to 0.5700.
On the upside, the pair might struggle near 0.5840 and an upper boundary of the bullish flag pattern. The next major resistance is near the 0.5855 level. A clear move above 0.5855 might even push the pair toward 0.5880. Any more gains might clear the path for a move toward the 0.5950 zone in the coming days.
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