The NZD/USD currency pair is showing potential for appreciation as technical analysis on the daily chart suggests a bullish trend. Currently trading at approximately 0.6210 in the Asian session on Thursday, the pair is consolidating within an ascending channel. The immediate resistance level is identified at 0.6280, which is the upper boundary of this channel. Conversely, the pair may encounter support near the nine-day Exponential Moving Average (EMA) at 0.6189.
The overall sentiment appears to be positive. The 14-day Relative Strength Index (RSI) remains above 50, reinforcing the notion of a continuing bullish trend. Moreover, the positioning of the nine-day EMA being above the 50-day EMA signifies strong short-term upward momentum for the NZD/USD pair, suggesting the likelihood of further gains.
Should the upward momentum persist, the NZD/USD could reach for the upper boundary of the ascending channel at 0.6280. Should this resistance level be surpassed, the pair might then target the eight-month high of 0.6302, which was established on September 3. A successful breach of this high could propel the pair towards the significant psychological resistance level of 0.6300.
On the other hand, if the pair breaks below the nine-day EMA support at 0.6189, this could signal a shift in sentiment. Such a move could threaten the integrity of the ascending channel, potentially leading to a decline toward the 50-day EMA at 0.6128. A break below this level may further deter bullish sentiment and could intensify selling pressure.
