November 23, 2023 12:38 PM

Analysis of NZD/USD price: rises toward a high and crosses above 0.6050

Analysis of NZD/USD price: rises toward a high and crosses above 0.6050

NZD/USD price analysis shows it is headed for a three-month high trading above 0.6050.  As markets adjust for the possibility that the Central Bank would boost interest rates further, the NZD/USD exchange rate rises. The NZD/USD pair is up around 0.6060 on Thursday during the European session.

It appears that market players have priced in the possibility of an additional rate increase from the Fed. The yield on US Treasury bonds begins a new downward trend due to this situation. This damages the US Dollar's (USD) reputation as a haven, especially when combined with a stable performance in the equities markets.

There is optimism for the NZD/USD pair as the 14-day Relative Strength Index (RSI) is above the 50 mark. Bulls in the pair may be encouraged to retest the psychological level of 0.6100 and then the three-month high at 0.6086.

Additionally, the market's bullish momentum is confirmed by the Moving Average Convergence Divergence (MACD) line, which is located above the centerline and diverges above the signal line.

The pair may descend to the 23.6% Fibonacci retracement at 0.6010, which may act as a critical support level aligned with the nine-day Exponential Moving Average (EMA) at 0.6007 if the pair breaks below the significant support level of 0.6050.

The NZD/USD pair may be able to test the 38.2% Fibonacci retracement at 0.5964, which would correspond with the psychological support zone around the 0.5950 level if there is a clear breach below the nine-day EMA.