Strong upward momentum seen and the pair claims December highs

• NZD/USD rose sharply to trade at 0.6340, up 1%, suggesting strong buying pressure.
• The RSI and MACD indicators are both rising sharply, indicating increasing buying momentum.
• With the pair near 0.6350, it hit its highest level since December.

On Tuesday, the NZD/USD pair rose sharply, gaining more than 1% to move to 0.6340, levels not seen since December 2023.

The Relative Strength Index (RSI) is currently at 70, in overbought territory. Looking at the Moving Average Convergence Divergence (MACD) confirms these conditions, printing rising green bars. However, traders should remain alert for a potential reversal as upward moves may be overextended and consolidation may be needed.

NZD/USD Daily Chart

The pair maintains a bullish outlook, trading above its major moving averages and holding strong at support levels of 0.6200, 0.6180 and 0.6150. On the upside, resistance is at 0.6280, 0.6300 and 0.6310. If the pair manages to close above 0.6280, it could signal further upside momentum, with the next target set around the early September highs near 0.6300. Breaking these resistance points with solid trading volume can strengthen the bullish situation.

Traders should not take a bearish consolidation off the table, and said supports could be used to consolidate recent gains.