NZDUSD’s newfound strength off the 100-day simple moving average (SMA) has prodded the pair above the tough 0.6800 boundary, resulting in a 19½-month high of 0.6903 being realized. The gradual incline of the 100-day SMA and the upturn in the 200-day SMA, in addition to the bullish tone of the Ichimoku lines, endorse further advances.
The short-term oscillators currently reflect intact positive momentum. The MACD is increasing above its red trigger line in the positive area, while the RSI is trying to maintain its step above the 70 mark. The stochastic lines are in overbought territory, promoting a positive drive in the price, and have yet to signal negative tendencies.
If the current trajectory persists, buyers face an initial resistance section of 0.6923-0.6968, which contains multiple peaks from December 2018 through to March 2019. Surpassing this heavy obstacle, the price may shoot for the 0.7052 high from June 2018, and the adjacent 0.7095 barrier just shy of the 0.7100 hurdle. Additional gains in the price may then focus on the 0.7152 inside swing low from March 2018.
Otherwise, if sellers resurface, early support may develop from the critical 0.6800 handle ahead of the Ichimoku lines at 0.6745 and 0.6723 respectively. Next, the limiting zone from the 50-day SMA of 0.6665 to the 100-day SMA at 0.6629 – that also encapsulates the cloud – may defend a deeper dip towards the key 0.6588 trough. Another leg down may encounter the 0.6545 low and the support base of 0.6487-0.6510, which may attempt to terminate extra negative moves from maturing. Should this task fail, traders’ attention may then shift towards the 200-day SMA at 0.6400 and the adjacent 0.6378 low.
Summarizing, NZDUSD conveys a short-to-medium term bullish tone above 0.6800 and the SMAs.
