The NZD/USD pair extended its upward trajectory for the third consecutive session on Wednesday, hovering around 0.5940 during the European trading hours. Amidst this movement, the pair is currently testing the lower boundary of a daily symmetrical triangle, positioned around the key level of 0.5963. A breach into this triangle formation could potentially alleviate the prevailing bearish sentiment.
However, a cautious analysis of the lagging indicator Moving Average Convergence Divergence (MACD) signals a downward trend for the NZD/USD pair. This is underscored by the placement of the MACD line below the centerline and the signal line, indicating a prevailing bearish bias.
Furthermore, the 14-day Relative Strength Index (RSI) maintains its position below the pivotal 50 level, lending further credence to the bearish outlook. Consequently, there exists a possibility for NZD/USD to approach the psychological support level of 0.5900. A breach below this critical level may trigger a downside movement, potentially testing subsequent support zones around 0.5863 and 0.5850.
Conversely, should the NZD/USD pair breach the upper boundary of the symmetrical triangle, it could aim for the psychological barrier at 0.6000. A successful breakthrough above this pivotal level may bolster the pair’s momentum, paving the way for a test of the 50-day Exponential Moving Average (EMA) positioned at 0.6023. Notably, this level coincides with the upper boundary of the triangle, offering a significant resistance zone around 0.6030.
