- NZD/USD extends previous session’s gains on Thursday.
- Double top formation near 0.7300 pauses upside rally.
- Momentum oscillator diverges against the price action.
The NZD/USD pair gathers momentum in the early European session. The pair is on the verge of a decisive trading juncture, awaiting confirmation of a meaningful trading opportunity.
At the time of writing, the NZD/USD pair is trading at 0.7295, up 0.22% for the day.
NZD/USD daily chart
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On the daily chart, the NZD/USD pair has been accumulating gains near the session’s high. The formation of spinning tops suggests price could face some downward pressure on account of profit taking. The pair is in continuous uptrend from the lows of 0.7004, but the rally seems to be exhausted near the candlestick formation.
On the downward move, the first target would emerge near the 0.7250 horizontal support level followed by the previous day’s low at 0.7220.
A break of the 20-day Simple Moving Average (SMA) at 0.7215 could intensify the selling toward the May 24 low at 0.7158.
Alternatively, the Moving Average Convergence Divergence (MACD) indicator reads above the midline with bearish divergence. If MACD stays above the midline, then it could push price higher with the first target at the previous day’s high near the 0.7320 area.
This would prompt NZD/USD bulls to take over late February’s level. The first in line will be the 0.7350 horizontal resistance area followed by the February 26 high at 0.7384.
NZD/USD Additioanl Levels
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