NZDUSD has been developing within an ascending trend since March 1 after the strong rebound on the 0.7185 support level. Although the pair hit several times the 0.7350 resistance barrier yesterday it failed to have a successful run above it and is currently moving near the 0.7310 price level and below the 20-simple moving average in the 4-hour chart.
Looking at momentum indicators, the RSI indicator approached the 50 level after the bounce off the overbought zone. The MACD oscillator also supports the downward correction as it fell below its trigger line, creating a bearish crossover.
In the wake of negative pressures, the market could meet support at the diagonal line before it heads lower to the 0.7285 support. A successful close below this level could see a retest of the 0.7245 strong barrier.
On the contrary, a move to the upside could see immediate resistance at the 0.7350 key level but should the market increase positive momentum above this zone, the 0.7385 could be the next level in focus taken from the peak on February 21.
