- NZD/USD gains traction for the second straight session on Tuesday.
- The set-up favours bulls and supports prospects for additional gains.
The NZD/USD pair built on its rebound from 38.2% Fibonacci level of the 0.5470-0.6070 recovery move and edged higher for the second consecutive session on Tuesday.
The overnight break through a one-week-old descending trend-channel, coinciding with 100-hour SMA, remained supportive of the ongoing positive move to one-week tops.
However, slightly overbought conditions on the hourly chart held investors from placing fresh bullish bets and failed to assist the pair to find acceptance above the 0.60 mark.
Meanwhile, oscillators on the 4-hourly chart maintained their bullish bias and have also recovered from the negative territory on the daily chart, supporting prospects for additional gains.
Hence, any meaningful pullback towards mid-0.5900s might still be seen as an opportunity to initiate some fresh bullish position, which should help limit any further downfall.
The 100-hour SMA, around the 0.5915 region, now seems to act as an immediate strong near-term support, which if broken might be seen as a key trigger for bearish traders.
NZD/USD 1-hourly chart
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Technical levels to watch
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