NZDUSD has struggled below the 0.7050 strong resistance level and touched the upper Bollinger Band, which stands near the 38.2% Fibonacci retracement level of the downleg from 0.7395 to 0.6850. However, the technical indicators are sending bullish signals, suggesting that the bullish correction will continue.
From the technical point of view, in the 4-hour chart, the RSI indicator is moving slightly higher, indicating that the market could strengthen in the short-term as it is approaching the 70 area. The stochastic oscillator supports a bullish picture as well since the index continues to increase positive momentum.
If the market manages to pick up speed above the 0.7050 barrier, then the 0.7095 hurdle could offer nearby resistance. A leg above this significant resistance could be found at the 50.0% Fibonacci of 0.7120.
However, should prices decline, immediate support could be found at the 0.7000 handle, near the latest low. A drop below the aforementioned obstacles could open the door for the 23.6% Fibonacci which stands near the 0.6975 level.
In the bigger picture, it is worth mentioning that NZDUSD has jumped above the 20- and 40-day SMAs signaling further gains.
