NZDUSD has been in a strong bullish tendency since March 19, reaching a fresh 32-month high of 0.7119 on Monday.
The flatten mode around the overbought territory in the RSI and the slowdown in the MACD oscillator show somewhat weak buying pressure, though both remain well above their neutral thresholds keeping the short-term risk skewed to the upside. In trend indicators, the bullish cross between 20- and 40-day simple moving averages (SMAs), created at the beginning of the previous month, is still an encouraging signal.
An advance above the 32-month peak of 0.7119 the price could find immediate resistance around the 0.7160 mark, taken from the inside swing high of March 2018. A successful attempt higher could meet the April’s 2018 top of 0.7395.
Otherwise, the 20-day SMA currently at 0.7027 could act as a strong support ahead of the 0.6970 level. Below that, the ascending trend line around 0.6880 near the 40-day SMA could attract attention before flirting with the 0.6800 psychological level and the 23.6% Fibonacci retracement level of the up leg from 0.5470 to 0.7119 at 0.6730.
Summarizing, the current trend is bullish, however, if NZDUSD declines beneath the long-term uptrend line could switch the bias to neutral.
Origin: XM
