NZDUSD skyrocketed over the last couple of hours and jumped above the 0.7260 critical level which overlaps with the 38.2% Fibonacci retracement level of the downleg from 0.7435 to 0.7152, posting a one-week high.
The rebound on the 0.7152 support barrier helped the price to create a strong bullish day surpassing the 20 and 40 simple moving averages (SMAs) in the 4-hour chart. Having a look at the momentum indicators, the RSI and the MACD seem to be in agreement with the bullish scenario. The RSI indicator is pointing north above the 50 level, while the MACD oscillator is rising in the negative territory and surged above its trigger line.
Further gains should see the 0.7285 barrier acting as a major resistance as this also slightly below the 50.0% Fibonacci mark near 0.7293. A jump above this level would reinforce the bullish structure in the short-term and open the door towards the next key level of the 61.8% Fibonacci of 0.7367.
In the event of a downside reversal, the 23.6% Fibonacci level could act as a barrier before the pair would be able to re-challenge the 20-SMA around the 0.7200 handle. A break below this level would shift the short-term outlook to a more neutral to bearish one as it would take the price near the 0.7152 support.
