NZD/USD Buys Defend Trendline as USD Weakens Amid Middle East Tensions
The New Zealand dollar (NZD) against the US dollar (USD) has remained relatively stable, closing Monday's session near its opening price. The pair saw a modest gain of 0.08% as the USD weakened due to rising tensions in the Middle East.
From a technical perspective, NZD/USD remains upward-biased, with the pair trading above an uptrend support line drawn from July lows. This trendline has been tested three times, and each time, buyers have stepped in, opening up further upside possibilities.
The Relative Strength Index (RSI) is still bullish, indicating a potential for further gains. To confirm this, NZD/USD needs to reclaim the 0.5950 area, followed by 0.6000. A decisive breakout could expose the February 12 high at 0.6077 and then the yearly peak of 0.6094.
On the downside, the first support is the trendline near 0.5901, followed by 0.5850. Once these levels are breached, the next stop will be the confluence of the 100- and 200-day SMAs near 0.5847/45, ahead of the 50-day SMA at 0.5818 and 0.5800.