NZD/USD Eyes 0.6000 as Kiwi Dollar Rallies

The New Zealand Dollar has been on a three-day rally and is now poised to challenge the 0.5900 level, according to technical analysis.

The daily chart shows that market structure is becoming more constructive, indicating further upside in the NZD/USD pair after surpassing the confluence of the 100- and 200-day Simple Moving Averages (SMAs) at around 0.5821/23.

Momentum has clearly shifted bullish, with the Relative Strength Index (RSI) aiming towards the overbought territory, but still below the 80 reading that marks extreme overextended uptrends.

If NZD/USD clears 0.5900, the next stop is the May 29 high at 0.5995, followed by 0.6000 and then the February 12 daily peak at 0.6077 before testing the yearly peak at 0.6094.