The NZDUSD shows a bullish trend, driven by upbeat “risk-on” markets and recent stock market upswings. A growing investor confidence in riskier assets and a renewed optimism in the global economy are powering this trend.
The successful rollout of COVID-19 vaccination programs globally, momentum in trade talks and robust fiscal stimulus packages in major economies, are all contributing to global liquidity, further fueling this behavior.
From an analytical perspective, the NZDUSD has passed key levels like the 100-day Moving Average (MA) and the 50% point of the peak drop in December 2023. This breakthrough is attributed to the bullish pressure received, leading to increased buying interest.
The RSI (Relative Strength Index) confirms the bullish trend with a reading above 70, supporting the possibility of further upward movement. Traders though, should watch for any sharp pullbacks that could challenge this upward momentum.
Higher highs and steadier lows by the pair signify a consistent upward trend. But potential geopolitical events or changes in economic indicators could destabilise this trend.
NZDUSD bullish trend amid global confidence
Hence, traders are advised to keep an eye on global economic news and indicators that could impact the pair’s progress.
The Moving Average Convergence Divergence (MACD) has recorded a bullish crossover, reinforcing the positive NZDUSD trend. Monitoring the MACD closely will be beneficial, as a bearish crossover may signal a potential reversal.
Maintaining the NZDUSD above these pivotal risk determinants should be priority to ensure a stable market and avoid a bearish trend. Buyers must be wary of how much further they can push the NZDUSD, tracking various economic indicators as well as geopolitical events that might influence the rate, and seek advice from forex experts and use trustworthy tools to aid analysis.
Despite “risk-on” environments suggesting an NZDUSD purchase strategy, buyers must maintain alertness due to possible market volatility affecting the NZDUSD value. A sudden change in monetary policies, geopolitical issues, economic releases, and significant business transactions could lead to sizeable market fluctuations.
Last but not least, investment decisions should be made after careful consideration of personal financial status and risk tolerance, considering the unpredictable nature of markets. Monitoring market trends and changes, seeking professional advice, maintaining patience and diversifying investments are integral parts of a successful investment strategy.
