The NZD/USD pair has surrendered some of its recent gains, trading around 0.5960 during the early European session on Friday.
Despite this pullback, technical indicators suggest a continued bullish outlook for the pair. It remains above the nine-day Exponential Moving Average (EMA), signaling a positive short-term price momentum. Additionally, the 14-day Relative Strength Index (RSI) is positioned above the 50 mark, further confirming the prevailing bullish sentiment.
A potential rebound toward the 70 mark on the RSI could reinforce market optimism, testing the six-month high of 0.6038, last seen in November 2024. Should the pair manage to break above this level, it could pave the way for further gains, potentially targeting the seven-month high near 0.6350, recorded in October 2024.
On the downside, initial support is found at the nine-day EMA, currently at 0.5929. A drop below this level could undermine the current bullish momentum, opening the door for further downside toward the 50-day EMA at 0.5781. In the event of a deeper pullback, the NZD/USD could face downward pressure toward the 0.5485 level, which has not been seen since March 2020.
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