Bullish bias is gaining strength, targeting 0.6280

• The NZD/USD pair has broken out of a sideways range, suggesting that upward pressure is developing.
• The RSI and MACD indicators are both rising, indicating increasing buying momentum.
• A close above the 0.6280 resistance level could open the door to further gains.

The NZD/USD pair, which rose to 0.6270 in Monday’s session, broke out of a sideways range that had been in place for the past seven sessions. The pair consolidated between 0.6210 and 0.6240, but has now crossed the upper boundary of this range, suggesting that upside pressure is developing.

The Relative Strength Index (RSI) is at 63 near the overbought zone and has a rising slope, while the Moving Average Convergence Divergence (MACD) is green and rising, which also suggests that buying pressure is growing.

NZD/USD Daily Chart

The overall outlook is bullish as the pair is trading above its major moving averages. The pair has three support levels formed at 0.6200, 0.6180 and 0.6150 and has formed resistance levels at 0.6280, 0.6300 and 0.6310. A close above the 0.6280 resistance level could open the door to further gains, with the next target being the early September highs near 0.6300.

That said, bulls should not focus entirely on looking to the upside and also need to consolidate their control above the 20-day simple moving average (SMA). A loss at this level would worsen the Kiwi’s technical outlook.