NZDUSD has been developing near to multi-month highs of 0.7028, continuing the powerful buying interest that started from 0.6586. The RSI indicator is hovering around the overbought region, while the MACD is strengthening its movement in the bullish area but marginally beneath the trigger line. The simple moving averages (SMAs) are endorsing the upside tendency as all of them are ticking higher in the near term.
A jump above today’s high could open the way for the 0.7060 resistance, that being the top of June 2018 ahead of the 0.7150 obstacle, taken from the peak of March 2018.
On the other side, a decline below the 20- and 40-period SMAs could reach the 0.6945 support before hitting the lower surface of the Ichimoku cloud at 0.6900. If sellers persist, this could send the market until the 0.6876 barrier.
To sum up, NZDUSD has been in an upward rally in the short- and long-term timeframes, however the momentum indicators are signaling an overbought market, suggesting a downside reversal in the near term.
