The New Zealand Dollar/US Dollar (NZD/USD) currency pair has been experiencing a bullish momentum in recent trading sessions, with buyers pushing the pair higher. However, as the pair approaches the 100-day Simple Moving Average (SMA), buyers are facing resistance that could potentially halt the upward movement.
The NZD/USD pair has been on an upward trend since the beginning of the year, supported by a weaker US Dollar and positive economic data out of New Zealand. The pair has gained over 5% since the start of the year, reaching a high of 0.7200 in recent trading sessions.
The 100-day SMA is a key technical indicator that is often used by traders to determine the overall trend of a currency pair. When the price is above the 100-day SMA, it is considered to be in an uptrend, while a price below the SMA indicates a downtrend. In this case, the NZD/USD pair is currently trading above the 100-day SMA, indicating a bullish momentum.
However, as the pair approaches the 100-day SMA, buyers are facing resistance that could potentially halt the upward movement. The SMA acts as a level of support or resistance, depending on whether the price is above or below it. In this case, the 100-day SMA is acting as a resistance level for the NZD/USD pair, with buyers struggling to push the pair higher.
If buyers are able to break above the 100-day SMA, it could signal a continuation of the bullish momentum and potentially push the pair higher towards the next resistance level at 0.7250. On the other hand, if the pair fails to break above the SMA, we could see a pullback towards support levels at 0.7150 and 0.7100.
In conclusion, the NZD/USD pair is currently experiencing a bullish momentum, with buyers pushing the pair higher. However, as the pair approaches the 100-day SMA, buyers are facing resistance that could potentially halt the upward movement. Traders should keep a close eye on the 100-day SMA for any potential breakouts or reversals in the near future.
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