Bulls bounce back, pair recovers below weekly highs

• The NZD/USD pair bounced back on Thursday, settling at 0.6330.
• The RSI and MACD indicators are turning bullish, supporting the prospect of further gains.
• Buyers offset most of Wednesday’s losses.

On Thursday, the NZD/USD pair bounced back from Wednesday’s losses, gaining 0.95% to settle at 0.6330. The pair is moving in a sideways trading pattern, indicating indecision between bulls and bears. That said, the bulls seem to have an advantage.

Technical indicators suggest that the buying pressure behind NZD/USD is increasing. The Relative Strength Index (RSI) rises above 50, the MACD (Moving Average Convergence Divergence) histogram prints rising green bars, also providing arguments for buyers.

NZD/USD Daily Chart

The overall outlook for NZD/USD is bullish. The pair is trading above its key moving averages and technical indicators are regaining strength. Buyers appear to have hit solid resistance at 0.6350, but appear to be preparing for a retest. In this respect, a break above could pave the way for upside and the pair could test the 0.6400 level. On the other hand, if the pair runs out of steam, the 0.6300 area can act as a barrier to selling pressure.