The New Zealand Dollar surged 0.48 percent against the US Dollar on Thursday, bouncing sharply after testing support at the 200-day Simple Moving Average near 0.5836. The currency pair has now cleared the critical 0.5900 level over the past two sessions, with bullish momentum building toward the 0.5950 target as technical indicators including the Relative Strength Index show strengthening sentiment.
The upward move follows a hawkish hold decision by the Reserve Bank of New Zealand, which has provided underlying support for the Kiwi. Traders and forex brokers should note the break above the recent trading range signals potential for further gains if momentum continues. The 200-day SMA held as a key support level, confirming buyers remain active at lower prices.
Market participants are watching whether NZD/USD can sustain above 0.5900 and push toward the 0.5950 resistance zone in coming sessions.
FXnCO Insight
Traders should monitor the 0.5900 level closely as it transitions from resistance to support, with stop-losses below the 200-day SMA at 0.5836 advisable for long positions targeting 0.5950.
Source: FXStreet