Promising outlook, bulls could confirm a comeback

• NZD/USD rose 0.70% to 0.6180 on Thursday.
• The RSI is in positive territory with a rising slope, suggesting that buying pressure is building
• If the bulls secure the 20-day SMA at 0.6185, it could confirm a recovery in buying traction.

In Thursday’s session, the New Zealand dollar appreciated against its US counterpart, recovering from the previous session’s decline. NZD/USD rose 0.75% to a high of 0.6180 as bulls took control of the market.

The Relative Strength Index (RSI) is currently at 55, which is in positive territory and has an upward slope, suggesting that bulls are gaining momentum. The Moving Average Convergence Divergence (MACD) has printed falling red bars, a sign of a potential bearish momentum reversal. This is in line with recent price action that shows the bulls are pushing back.

NZD/USD Daily Chart

Key support levels to watch are 0.6120, 0.6140 and 0.6160, while resistance levels are 0.6185 (20-day SMA), 0.6210 and 0.6230. A consolidation above 0.6200 would put the pair back above the 20,100 and 200-day SMAs, which could trigger further upside moves.