Bulls gain traction, upside potential remains

• NZD/USD soared to 0.6100, extending Friday’s gains.
• RSI stands above 60 and MACD’s rising green bars hint at a increasing bullish momentum.
• Outlook will be bright if the bulls hold above 0.6100.

In Monday’s session, the NZD/USD rose by more than 0.80% to 0.6100, tallying a two-day winning streak. The pair has been trading in within a range between 0.5980 and 0.6110 for the past few weeks but the breakout of Monday suggests a stronger upward momentum.

On the daily chart, the Relative Strength Index (RSI) jumped to 61 while Moving Average Convergence Divergence (MACD) is showing rising green bars, suggesting increasing bullish momentum. These indicators suggest that the buying pressure is gathering strength and a further rise is possible.

NZD/USD daily chart

The NZD/USD pair is facing immediate resistance at 0.6110, the top of the range it has been trading in. A consolidation above this level could open the door for a further rally towards 0.6150 (the recent swing high before the pullback). On the downside, immediate support lies at 0.6070 and a break below this level could lead to a deeper correction towards 0.6030. Traders should monitor any breaks above or below the mentioned levels as they could set the pace for the next sessions.