The NZD/USD pair has been stabilizing near the 20-day Simple Moving Average (SMA) of 0.6140 after a dip to a low of 0.6115. Bulls and bears are currently locked in a tight battle, with neither side making significant progress. The consolidation phase that followed a sharp increase in mid-May has led to a challenging trading environment for the pair.
In the daily chart, indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) suggest a continued consolidation with a slight downward momentum. The RSI has shifted downwards, indicating a decrease in buying pressure, while the MACD shows flat red bars, further supporting the consolidation narrative.
Looking ahead, the immediate support for the NZD/USD is at the 20-day SMA of 0.6140, with strong support levels at the 100 and 200-day SMAs in the 0.6050-0.6060 range. These levels could act as a solid base for the pair in case of a bearish takeover. However, a break below this support zone may signal potential selling opportunities for traders.
On the upside, the key resistance level is at 0.6200. If this level is breached, it could signal a buy opportunity for traders looking to capitalize on a potential upward trend.
It’s important to note that trading in the forex market involves risks, and the information provided here is for informational purposes only. It’s essential to conduct thorough research and analysis before making any investment decisions. The views expressed in this article are those of the author and do not necessarily reflect the official stance of FXStreet or its advertisers.
In conclusion, the NZD/USD pair is currently experiencing a consolidation phase with both bulls and bears struggling for control. Traders should pay close attention to key support and resistance levels to identify potential trading opportunities in this challenging market environment.