NZDUSD recorded a fresh four-and-a-half month high of 0.6821 on Thursday and is set to create the third bullish day in a row. The price surpassed the 61.8% Fibonacci retracement level of the downleg from 0.7060 to 0.6423, around 0.6818, suggesting that the bullish movement is strengthening in the near term. The RSI indicator entered the overbought zone with strong momentum, while the MACD oscillator is rising in the positive territory.
If the bulls continue to have the upper hand, the price could challenge the next immediate resistance of the 0.6850, taken from the high on July 26. If there are further advances, the pair could hit the 0.6920 barrier, reached on June 25.
If the price fails to print a green day above the 0.6813 resistance, a retracement is possible until the 20-and 40-simple moving averages (SMAs), which are overlapping at 0.6760. Even lower, the 0.6700 psychological area could be the next level for investors to have in mind.
Overall, the short-term outlook appears bearish, and the medium-term one is shifting from bearish to more neutral to bullish one.
Origin: XM
