Technical Analysis – NZD/USD rallies towards previous high of 0.6945

news_22_feb_nzd_usd_1NZDUSD is trading not too far from the 0.6945 resistance level and momentum indicators suggest there is still some optimism for the pair to advance again. The near-term bias is looking bullish as the RSI is edging north in the bullish area, while the MACD is trying to extend its movement above its trigger line. Price action at the moment is above the Ichimoku cloud so the risks are to the upside.

Should the pair make another run higher, it’s likely to meet resistance at 0.6945 as this level strongly capped prices on Wednesday. A successful break above this key resistance area would open the way for the 0.6970 barrier ahead of the 0.7060 hurdle, registered in June 2018.

If the soft positive momentum fails to hold and prices turn lower, the red Tenkan-sen line at 0.6905, which overlaps with the 20-period simple moving average (SMA) is the nearest support that could halt steeper declines. A potentially more important support, though, is the 40-period SMA which stands near the 0.6876 level.

In the bigger picture, NZDUSD would need to make a sustained climb above 0.6970 for the outlook to become convincingly bullish.

Origin: XM

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