The NZD/USD pair is pushing higher on Monday, April 13, climbing back toward the 0.5880 region as broad US Dollar (USD) weakness becomes the dominant market driver.
Headlines of failed Iran-United States (US) talks report that President Donald Trump is sending the US Navy to close the Strait of Hormuz.
Despite persistent geopolitical tensions in the Middle East, particularly regarding the Strait of Hormuz and uncertain diplomatic signals from Iran, the US Dollar (USD) is struggling to maintain its status as a safe-haven currency. Instead, markets seem to be lessening their initial fear-based demand for the dollar, with trading flows shifting away from it.
Short-term technical analysis:
In the four-hour chart, EUR/JPY trades at 187.39, holding a clear bullish bias as it remains comfortably above both the 20-period simple moving average (SMA) at 186.26 and the 100-period SMA at 184.52. The pair is pressing fresh highs with the Relative Strength Index (14) hovering in overbought territory near 80, which suggests strong upside momentum but also leaves the cross vulnerable to bouts of profit-taking at elevated levels.
On the topside, immediate resistance is located at 187.51, where initial supply could emerge. On the downside, nearby support is clustered just below the market at 187.37, followed by 187.08 and 186.99, with the rising 20-period SMA at 186.26 reinforcing the intraday floor and the 100-period SMA at 184.52 underpinning the broader uptrend.
(The technical analysis of this story was written with the help of an AI tool.)
Source: https://www.fxstreet.com/news/nzd-usd-rebounds-as-usd-weakness-dominates-despite-geopolitical-tensions-202604132145
