NZD/USD Price Forecast: Bulls eye 0.6000 after SMA break

The Kiwi Dollar extends its three-day rally, climbing above 0.5850 and is poised to challenge 0.5900 amid improving risk appetite and broad US Dollar weakness. The clearance of the 200-day Simple Moving Average (SMA) supports the bullish trend, as traders eye the May monthly high at 0.5995.

NZD/USD Price Forecast: Technical outlook

The daily chart shows that market structure is becoming more constructive, indicating further upside in the NZD/USD pair. After surpassing the confluence of the 100- and 200-day Simple Moving Averages (SMAs) at around 0.5821/23, the pair is poised to hurdle the 0.5900 figure.

Momentum has clearly shifted bullish. The Relative Strength Index (RSI) is bullish and aiming towards the overbought territory. Should be remembered that the 80 reading is more precise, delineating extreme overextended uptrends.

If NZD/USD clears 0.5900, the next stop is the May 29 high at 0.5995. Above is 0.6000 followed by the February 12 daily peak at 0.6077, before testing the yearly peak at 0.6094.

Downwards, the first support is the psychological level of 0.5850. Below is the confluence of the 100- and 200-day SMAs, at around 0.5821/23, ahead of 0.5800. Below is the 50-day SMA at 0.5790.

NZD/USD Price Chart – Daily