NZDUSD has steered decisively beyond the 0.6800-0.6817 resistance border that has capped advances since mid-January and is looking buoyant. Above the 200-period simple moving average (SMA), the ascending 50- and 100-period SMAs continue to endorse the bullish structure.
The rising Ichimoku lines are implying that positive forces are growing, while the short-term oscillators are reflecting the increase in positive momentum. The MACD, far north of the zero threshold, is strengthening above its flattened red trigger line, while the RSI is flirting with the 70 overbought level. Currently, the stochastic oscillator is exhibiting a strong positive charge and the %K line is improving in overbought territory, which is only an optimistic signal for price gains.
If the positive trajectory endures, nearby upside constraints could emanate from the 0.6849 barrier and the 0.6873 high. However, should the price move through these obstacles, the 0.6890-0.6916 resistance border, which has prevailed since the early part of October 2021, may be challenged. In the event this downside defence fails to dismiss additional gains, buyers could then target the 0.6956-0.6986 resistance band that extends back to mid-November 2021.
If upside pressures start to wane, initial downside hindrance could evolve at the 0.6800-0.6817 zone (previous resistance-now-support), where the red Tenkan-sen line also lies. If selling pressures overlook this obstacle, the fortified region from the 0.6766 low until the 0.6740 barrier may try to shape some footing for the bulls. Yet should a deeper retreat in the pair unfold, a key region between the cloud’s floor at 0.6719 and the 200-period SMA at 0.6686 may draw traders’ attention. Should this section, involving the 100-period SMA and a potentially still valid uptrend line pulled from the 16-month low of 0.6528, struggle to keep sellers at bay, the 0.6665 level, where a recent negative gap formed a foothold, could come under fire.
Summarizing, NZDUSD’s one-month uptrend remains intact above the 0.6800-0.6817 boundary. Upside momentum is likely to bolster with a price jump above the 0.6890-0.6916 border. That said, a break below the diagonal support, which extends past the 0.6665 low could strengthen negative tendencies. Meanwhile, a close below the 0.6630 trough may trigger worries about the near-term positive trend.
