- The NZD/USD pair built on its post-RBNZ upsurge and climbed to two-month tops in the last hour, testing the 0.6985 strong horizontal resistance.
- This is closely followed by the 0.6700 congestion zone comprising of 100-day SMA and 50% Fibonacci retracement level of the 0.6939-0.6482 downfall.
With technical indicators on daily chart holding comfortably in the bullish territory and still far from pointing to overbought conditions, a convincing break through the mentioned confluence hurdle will confirm a near-term bullish breakout.
A follow-through buying has the potential to extend the positive momentum further towards its next major resistance near the 0.6765-70 region – marking 61.8% Fibonacci level en-route the 0.6800 round figure mark and the 0.6825-30 supply zone.
On the flip side, the 0.6600 handle now becomes immediate strong base and should act as a key pivotal point for short-term bullish traders, which if broken might negate any short-term positive bias and again turn the pair vulnerable in the near-term.
NZD/USD daily chart
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