The NZD/USD pair has rebounded sharply from last week’s low, breaking out of a falling wedge pattern, with the 50-day moving average now in focus near 0.5730 as a potential hurdle for further gains, foreign exchange market analysts at Société Générale note.
NZD/USD breaks the falling wedge, gaining upward momentum
“NZD/USD saw a sharp bounce after forming a temporary bottom near 0.5580 last week. It has exited a falling wedge-like pattern highlighting the return of bullish momentum.”
“The pair is quickly approaching the 50-DMA at 0.5730, which could be a short-term hurdle. It will be interesting to see if the pair is able to stabilize above this resistance. A break above the moving average could lead to an extension in the retracement phase.”
