NZDUSD has been trading within a consolidation area over the last ten days with upper boundary the 0.7050 resistance level, which holds near with the upper boundary of the Bollinger Band, and lower boundary the 0.7000 handle, which coincides with the lower Bollinger Band. Moreover, the technical indicators are sending neutral signals, suggesting that the sideways move will continue.
In the 4-hour chart, the RSI indicator is holding near the threshold of 50 and is moving slightly higher with weak momentum, while the MACD oscillator is flattening around the zero line, supporting the neutral picture as well.
If the market manages to pick up speed above the 0.7050 barrier and passes the 38.2% Fibonacci retracement level of the downleg from 0.7395 to 0.6850, around 0.7060, 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 previous lows. A drop below the aforementioned obstacle could open the door for the 23.6% Fibonacci which stands near the 0.6975 support level.
