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  • NZD/USD trades on a positive note in the early European session.
  • Price comfortably placed over the 20-day SMA at 0.7215.
  • Broader upward channel reflects the underlying bullish bias.

The NZD/USD pair locks in some modest gains on Tuesday. The pair opened on a lower note but rebounded swiftly toward the 0.7230 mark.

At the time of writing, the NZD/USD pair is trading at 0.7221, up 0.18% on the day.
 

NZD/USD daily chart

On the daily chart, the pair is accumulating gains above the 20-day Simple Moving Average (SMA) at 0.7215, while extending the previous session’s gains. The pair continues to move in an upward channel where highs and lows are capped between 0.7141 and 0.7300.  
As for now, after taking the multiple supports near the lower trend line of the mentioned channel, the pair continues to move higher, aiming for the May 19 high at 0.7250.

The Moving Average Convergence Divergence (MAC) indicator reads above the midline with bullish crossover. This signifies the continuation of the upward momentum toward the May 10 high at 0.7306 followed by the 0.7350 horizontal resistance level.

Alternatively, if price moves below the session’s low at 0.7204, then it could bring the May 14 low at 0.7167 back into the picture and mark the reversal of the prevailing trend. Next, the pair would like to test the lower trend line, which also coincides with the May 13 low at 0.7134.  

Market participants would then look to the level from where price started the upward journey inside the upward channel at 0.7115.
 

NZD/USD Additional Levels