Anna 
In Tuesday’s European session, the NZD/USD pair surged to a fresh 10-week high, reaching 0.6165. The New Zealand Dollar (Kiwi) strengthened, propelled by multiple factors including a weakened US Dollar and China’s announcement of new stimulus measures aimed at revitalizing its struggling housing sector.
The US Dollar Index (DXY), tracking the USD against six major currencies, extended its decline to 104.50. Despite diminished expectations of Federal Reserve (Fed) interest rate cuts starting from the September meeting, the USD failed to capitalize. This shift in market sentiment regarding Fed rate cuts stemmed from a robust US economic outlook and a hawkish stance from policymakers on interest rates.
Meanwhile, the New Zealand Dollar gained ground following China’s unveiling of measures to bolster its housing market. Shanghai authorities announced plans to reduce down payment requirements, lower minimum mortgage rates, and ease restrictions on home purchases. As a proxy for the Chinese economy, the appeal of the Kiwi improved.
On the domestic front, investors are eagerly awaiting the NZ Budget Release, which will provide insights into government spending, borrowing, and revenue collection.
Technical indicators suggest further upside potential for NZD/USD. The pair is approaching a horizontal resistance level established from the February 22 high around 0.6220. A bullish trend was confirmed by the crossover of the 20 and 50-day Exponential Moving Averages (EMAs) around 0.6020.
The 14-period Relative Strength Index (RSI) has comfortably shifted into the bullish range of 60.00-80.00, indicating momentum favoring the upside.
A breach above the psychological level of 0.6200 could drive the pair towards the January 15 high near 0.6250, followed by the January 12 high around 0.6280.
Conversely, a downside move may occur if the pair breaks below the April 4 high at 0.6050, leading to potential support levels at the psychological level of 0.6000 and the April 25 high of 0.5969.
