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NZD/USD consolidates near 0.6000 after breakout above 0.5900
FXStreet notes that New Zealand’s downbeat retail sales data is a headwind, but NZD/USD remains supported by weaker US dollar sentiment and holds above the 200-day SMA near 0.5845.
NZD/USD is in a bullish consolidation phase at the start of the week, trading around 0.5975 in the Asian session and just below its highest level since June, according to FXStreet. The pair continues to hold above the 200-period simple moving average near 0.5845, which the outlet says helps underpin the recent advance.
FXStreet said New Zealand’s downbeat retail sales data is acting as a headwind for the New Zealand dollar. Still, the pair’s tone is supported by weaker sentiment around the US dollar.
On the technical setup, FXStreet pointed to a Friday breakout above 0.5900 as a trigger for NZD/USD bulls, while noting that RSI near 69 signals strong but increasingly stretched upside momentum. The outlet added that a deeper pullback below 0.5900 is expected to attract buying interest to preserve the constructive structure.
FXStreet also highlighted 0.6000 as the immediate psychological hurdle, suggesting bulls may wait for sustained strength and acceptance above that level before looking for an extension of the strong move higher from the year-to-date low near 0.5625 reached in June.