NZDUSD has been developing in an upward sloping channel since December 2017 and during yesterday’s trading session it reached a fresh five-month high of 0.7436, though it ended the day in the red. However, it regained some ground over today’s European session.
Short-term momentum indicators are signaling for opposite scenarios. The RSI indicator is pointing north in the positive territory, whilst the MACD oscillator slipped below its trigger line but remains in the bullish area. Moreover, in the 4-hour chart, the 20 and 40 simple moving averages are following the price, suggesting further gains.
To the upside, the next resistance level to watch is the 5-month high of 0.7436, while above it the next major barrier is the 0.7460 obstacle taken from the bottom of July 2017.
If prices reverse lower, immediate support could come at 0.7325, which is near the lower band of the sloping channel. Below that, the 23.6% Fibonacci retracement level with the low at 0.6820 and the high at 0.7436, is another major support around 0.7290.
