NZD/USD Bulls Eye 0.6000 After SMA Break

The NZD/USD has broken above its 100- and 200-day Simple Moving Averages (SMAs) at around 0.5821/23, indicating a shift in market structure towards further upside for the pair.

The Relative Strength Index (RSI) is now bullish, aiming towards overbought territory, but this could also lead to overbought risks emerging.

If NZD/USD clears 0.5900, traders eye the May monthly high at 0.5995 as the next target, followed by 0.6000 and then the February 12 daily peak at 0.6077 before testing the yearly peak at 0.6094.

The clearance of the 200-day SMA supports the bullish trend, with improving risk appetite and broad US Dollar weakness contributing to the Kiwi Dollar's rally.