NZDUSD rallied to multi-month highs last week to hit 0.7484 after successfully breaking above a key resistance level at 0.7300. The pair was unable to sustain gains above this level and has fallen back below it. This level is now being tested and is acting as a resistance level again.
Looking at the bigger picture, NZDUSD remains bound within an ascending channel thereby maintaining its year-long bullish market structure (uptrend since January low of 0.6346).
A break below important support area between the key 0.7200 level and the 50-day moving average (0.7213) would start to shift the overall uptrend and a fall below support at 0.6950 would eliminate the overall bullish bias.
The near term bias is bearish and this is highlighted by the falling RSI which has dipped below 50 into bearish territory.
Origin: XM
