- NZD/USD teasing rising wedge hurdle on the hourly chart.
- Hourly RSI stays bullish and points north, further upside likely.
- 0.6919 is the level to beat for the kiwi bears.
NZD/USD extends its rally to hit the highest levels since December 2018 above 0.6950, as the bulls rejoice a big beat on New Zealand’s Retail Sales data.
The NZ retail consumer spending jumped by 28% QoQ in Q3 vs. 20% expected. Meanwhile, successful vaccine trials—led risk-on mood also add to the strength in the Kiwi.
From a technical perspective, the spot caught a fresh bid-wave after it managed to hold the critical 50-hourly moving average support at 0.6919.
The bulls recaptured the 21-HMA support-turned-resistance, as it marched higher to test a potential rising wedge pattern’s upside barrier at 0.6953.
An hourly closing above the latter could open doors towards the December 2018 high of 0.6971 en route to the key 0.7000 level. The hourly Relative Strength Index (RSI) points higher within the bullish zone, supporting the case for the additional upside.
To the downside, immediate support is seen at 21-HMA, now at 0.6938. Acceptance below the last could put the strong cushion at 0.6919 at risk. That level is the intersection of the 50-HMA and rising trendline support.
The next downside target is seen at the 100-HMA, which is at 0.6911.
NZD/USD: Hourly chart
NZD/USD: Additional levels
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