NZD/USD Price Analysis: Bulls keep eyes on 0.7170

• NZD/USD records sharp gains in the European session.
• Bulls are facing rejection just above 0.7100 inside the rising channel.
• Positive MACD favors upside bias.

The NZD/USD pair keeps the upside momentum in the European session. The pair refreshes the daily highs near 0.7105 before marking an intraday low at 0.7118.

At the time of writing, NZD/USD is trading at 0.7115, up 0.9% on the day.

NZD/USD daily chart

On the daily chart, the NZD/USD pair has been trading with an upside conviction and is extending the overnight gains. The prices successfully breached interim resistance placed near the channel’s upper trend line at 0.7107. A sustained move above the said level would test March 23 highs in the vicinity of 0.7170 and further to the 0.7200 horizontal resistance zone.

The Moving Average Convergence Divergence (MACD) indicator reads below the central line with oversold conditions, which suggests prices could witness sharp upside on short-covering realizing the possibility of March 18 highs near 0.7230.

On the flip side, the prices could test the 50-day DMA placed at 0.7040 to reach near Tuesday’s low at 0.7004. A sustained move below the mentioned level would also mark the breaking of the upward channel’s lower line, where the price could plunge toward April 1 lows at the 0.6945 level.  

NZD/USD additional levels