NZD/USD Buyers Look to Confirm Short-Term Bullish Trend
Market Overview
The New Zealand Dollar continued to strengthen against the US Dollar for the second consecutive session on Wednesday, supported by a shift in global trade sentiment. Optimism grew after US President Donald Trump hinted at a more measured approach to tariffs, noting that not all threatened duties would be enforced on April 2 and that exemptions could be considered. Although specific details were lacking, this softening tone supported risk-sensitive currencies like the Kiwi.
Technical Analysis
NZD/USD has rebounded from the lower Bollinger Band, breaking above last week’s high at 0.57501 and now challenging immediate resistance at 0.57600. The tight horizontal Bollinger Bands indicate reduced volatility, suggesting that buyers require stronger momentum to sustain upward movement.
If bulls succeed in closing above 0.57600, it could trigger a continuation toward 0.57727 and 0.57866, with the final resistance set at 0.58092. Momentum indicators reinforce the bullish case. RSI is trending upward, and the MACD histogram shows a growing positive divergence. However, failure to maintain bullish pressure could invite sellers back into the market. A drop toward the previous low of 0.57136 would threaten the current bullish structure.
Key Technical Levels
- Resistances: 0.57600, 0.57727, 0.57866, 0.58092
- Supports: 0.57501, 0.57362, 0.57136
Fundamental Drivers
The Kiwi’s recent strength stems from an improvement in global risk sentiment tied to a potential de-escalation in US trade policy. However, dovish expectations from the Reserve Bank of New Zealand temper the currency’s upside. Investors are balancing external optimism against local monetary policy risks. Any update regarding tariff implementation or forward guidance from the RBNZ could drive the next move in NZD/USD.
Conclusion
NZD/USD is attempting to confirm a short-term uptrend. A break above 0.57600 could lead to 0.57866 and beyond. A reversal toward 0.57136 would negate the bullish bias.
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