24 Feb 2025

NZD/USD may aim for the two-month peak at 0.5794. The 14-day RSI remains above the 50 threshold, further supporting the bullish outlook. The nine-day EMA, situated at the 0.5721 level, serves as immediate support.

During European trading hours on Monday, the NZD/USD pair sustains its position around 0.5750. Analyzing the daily chart reveals a positive market sentiment, as the pair continues to operate within an ascending channel.

The NZD/USD pair has the potential to aim for the two-month peak of 0.5794, which was achieved on January 24, with the next target being the upper limit of the ascending channel at the 0.5810 mark. A successful breach of this significant resistance area could strengthen the bullish sentiment and propel the pair towards the three-month high of 0.5922, last observed on December 3.

Immediate support for the NZD/USD pair may be found at the nine-day EMA, positioned at 0.5721, followed by the 14-day EMA at the 0.5707 level. Additional support is indicated at the lower boundary of the ascending channel, located at the 0.5700 level.

Should the pair break below the channel, it would diminish the bullish outlook and exert downward pressure on the NZD/USD pair, potentially leading it to the vicinity of 0.5516, which represents its lowest level since October 2022, recorded on February 3.
The 14-day Relative Strength Index (RSI) is consistently above the 50 mark, reinforcing the optimistic perspective. Additionally, the NZD/USD pair is trading above both the nine- and 14-day Exponential Moving Averages (EMAs), signifying strong short-term momentum.

Resistance Levels:

    0.5750 - 0.5770: The price is currently approaching this zone, which may act as short-term resistance.
    0.5800: A psychological level that could act as a strong resistance if the price continues to climb.

Support Levels:

    0.5650 - 0.5680: The last strong bounce occurred around this zone, making it a key support area.
    0.5500 - 0.5550: If price fails to hold above 0.5650, the next major support lies in this region.

Target Price:

    If NZD/USD breaks above 0.5770, the next upside target could be 0.5800 - 0.5850.
    If it fails to break resistance, a pullback toward 0.5650 - 0.5680 is possible.

Technical Indicator (RSI Observation):

    The RSI is currently around 50-52, indicating neutral momentum.
    A break above 60 would confirm bullish momentum, while a drop below 40 could indicate renewed weakness.