- NZD/USD strengthens as it remains within an ascending channel pattern.
- The 14-day RSI is holding above the 50 level, indicating the continuation of an uptrend.
- A breach below the ascending channel would diminish the current bullish bias.
NZD/USD has rebounded from recent losses, trading around 0.6280 during early European hours on Thursday. The pair is currently testing the lower boundary of its ascending channel pattern, and a successful breach below this channel could weaken the prevailing bullish bias.
Nonetheless, the 14-day Relative Strength Index (RSI) remains above the 50 level, indicating that the bullish trend is still intact. Furthermore, the nine-day Exponential Moving Average (EMA) is positioned above the 50-day EMA, suggesting that the short-term price momentum favors the NZD/USD pair.
On the upside, the NZD/USD could target the upper boundary of the ascending channel around the 0.6380 level. A breakout above this level would bolster the bullish sentiment and support a potential return to the 15-month high of 0.6409 recorded in December 2023.
For support, the NZD/USD pair may test the nine-day EMA at 0.6251. A break below this level could dampen bullish sentiment and increase selling pressure, bringing the pair closer to the 50-day EMA at 0.6156, followed by its five-week low at 0.6106.
NZD/USD: Daily Chart
