The New Zealand dollar rose against its US counterpart, supported by positive domestic data. New Zealand retail sales rose better than expected, reinforcing the view that the Reserve Bank of New Zealand will maintain a relatively hawkish monetary policy stance.
Conversely, the US dollar came under pressure after CPI inflation data came in within expectations, reducing the likelihood of an interest rate hike at the upcoming Federal Reserve meetings
Technical Indicator Analysis
Moving Averages
The price is above the three moving averages (50, 100, and 200).
The averages indicate a strong uptrend.
MACD
The positive momentum continues, with the two lines converging.
No clear negative signals yet.
Stochastic
In an area close to overbought (73).
We may see a slight decline before the upward trend continues
Possible Scenarios
Bullish Scenario
A break above 0.5931 could push the price towards 0.5951 and then 0.5975.
Provided the price remains above 0.5891.
Bearish Scenario
A rejection from the 0.5931 level could push the price towards 0.5891.
A break above 0.5853 would temporarily weaken the momentum
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | NZD/USD |
| 0.59391 | 0.58948 | Entry point |
| First resistance: 0.59618 | First support: 0.58710 | Target Point 1 (TP1) |
| Second resistance 0.59858 | Second support 0.58450 | Target Point 2 (TP2) |
| 0.58948 | 0.59391 | Stop Loss (SL) |
The NZD/USD pair is exhibiting a strong bullish structure supported by strong economic fundamentals.
From a technical perspective, any pullback is a buying opportunity as long as the 0.5853 level remains unbroken.
It is preferable to wait for a clear break above 0.5931 to confirm the continuation of the upward trajectory towards 0.5975, while adhering to risk management in light of the possibility of a short-term technical correction
