- NZD/USD added to the overnight gains and climbs further beyond 0.6500 mark.
- The technical set-up supports prospects for an extension of the positive move.
The NZD/USD pair added to the previous session’s strong positive move and gained some follow-through traction on Tuesday, climbing further beyond the key 0.6500 psychological mark to near four-month tops.
Given the overnight sustained move above 100-day SMA and a subsequent breakthrough a horizontal resistance, the technical set-up remains tilted in favour of bullish traders and support prospects for additional gains.
Meanwhile, technical indicators on hourly charts are already flashing overbought conditions. Adding to this, oscillators on the daily chart have also moved on the verge of breaking into overbought territory and warrant some caution.
Hence, any further positive move might confront stiff resistance and remain capped near the very important 200-day SMA, around the 0.6545-50 region.
On the flip side, any meaningful pullback now seems to attract some dip-buying interest near the horizontal resistance breakpoint, now turned support around the 0.6440 region and help limit the downside.
NZD/USD daily chart
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