NZDUSD touched the four-month peak of 0.6580 for the second time over the last month. The momentum indicators, though, are currently suggesting that the buying interest may have topped, and the pair may be regain positive momentum. The RSI and the MACD are pointing slightly down, and from the Ichimoku indicators, the red Tenkan-sen line has also paused its upside move.
A closing price above 0.6580 could boost buying interest and confirm additional gains towards the 0.6665 resistance. Higher still, the 0.6750 barrier, registered on December 2019 could also react as resistance.
In the event of a pullback below the 20-day simple moving average (SMA), the bears may push harder to clear the 0.6375 floor and head for the 23.6% Fibonacci retracement level of the up leg from 0.5467 to 0.6580 at 0.6323, which overlaps with the 200-day SMA. Below that, the 0.6175 support could come in focus ahead of the 38.2% Fibonacci of 0.6160.
Meanwhile in the medium-term picture, the outlook remains strongly bullish following March’s upside rally, however, traders could stay cautious unless the price breaks above 0.6580.
