- NZD/USD extends gains despite bearish sentiment prevailing in the pair.
- A break below 0.5900 could lead the pair to test the bounce support level of 0.5863.
- A breakout of the triangle around the 0.5963 level could weaken the bearish sentiment.
The NZD/USD pair advances for the third consecutive session on Wednesday, trading around 0.5940 during the European session. The pair is testing the lower boundary of the daily symmetrical triangle around the 0.5963 level. A breakout of the triangle could weaken the bearish sentiment.
However, analysis of the MACD (Moving Average Convergence Divergence) lagging indicator suggests a bearish trend for the NZD/USD pair. This is indicated by the placement of the MACD line below the center line and the signal line.
Furthermore, the 14-day RSI remains below the 50 level, further confirming the bearish sentiment. This could lead NZD/USD to approach the psychological level of 0.5900. A break below this level could lead the pair to test the bounce support zone around the 0.5863 and 0.5850 levels.
Alternatively, if the NZD/USD pair breaks the symmetrical triangle, it could head towards the psychological barrier of 0.6000. A break above this level could support the pair's momentum to test the 50-day EMA at 0.6023, which aligns with the upper boundary of the triangle around 0.6030.
NZD/USD: Daily Chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
