NZD/USD technical analysis: 200-hour MA scaled, further gains likely on US-China trade optimism

• NZD/USD has cleared the resistance of the 200-hour moving average. 
• The easing US-China trade tensions and the technical setup favors further gains.

NZD/USD has found acceptance above the 200-hour moving average (MA) and could rise furher on the US-China trade optimism. 

The currency pair is currently trading at 0.6344, representing 0.30% gains on the day. The 200-hour MA is now located at 0.6327. The Reserve Bank of New Zealand kept rates unchanged at 1.00% as expected. 

The 50- and 100-hour MAs have produced a bullish crossover and the relative strength index is reporting bullish conditions with an above-50 print. 

Further, the daily chart shows a bullish reversal candlestick setup – the pair created an inside bar candle on Monday and posted a strong follow-through on Tuesday. 

All-in-all, the pair is likely to extend gains during the day ahead – more so due to the easing US-China trade tensions. Reports hit the wires a few minutes before press time that China has decided to support purchases of more US farm products, including soybeans and pork, by offering exemptions from additional tariffs as a goodwill gesture ahead next month's high-level trade talks. 

Hourly chart

Trend: Bullish

Technical levels