NZD/USD has pulled back from a two-month high of 0.6140, trading around 0.6110 during the European session on Thursday. This retreat is attributed to an upward correction in the US Dollar (USD) driven by improved US Treasury yields.
Technical analysis indicates a bullish trend for the pair, with the momentum indicator MACD showing an upward trajectory as the MACD line is above the centerline and diverging above the signal line. The 14-day RSI remains above the 50 level, confirming the bullish sentiment.
Key resistance for NZD/USD is at 0.6150, with a break above potentially leading to further gains towards the psychological level of 0.6200 and March’s high at 0.6218. On the downside, immediate support is at 0.6100, followed by the 23.6% Fibonacci retracement level at 0.6081. A break below this level could see the pair testing the 14-day EMA at 0.6026.
In summary, NZD/USD is currently experiencing a pullback from recent highs, but technical indicators suggest a continuation of the bullish trend for the pair. Traders will be closely watching key resistance levels for potential breakout opportunities.