- The NZD/USD pair continued gaining positive traction for the fourth consecutive session and climbed to near three-month tops on the first day of a new trading week.
- The pair now seems to have entered a bullish consolidation phase and was seen oscillating in a narrow trading band comfortably above the 0.6700 round figure mark.
Given that the pair has managed to hold above an important confluence region – comprising of the very important 200-day SMA and 50% Fibo. level of the 0.6939-0.6481 recent slide, the set-up might have already tilted in the favour of bullish traders.
Meanwhile, technical indicators on the daily chart have been gaining positive traction and further reinforce the constructive set-up, though slightly overbought conditions on hourly charts held investors from placing any fresh bullish bets.
Hence, it would be prudent to wait for a follow-through buying before traders start positioning for any further near-term appreciating move towards 0.6775-80 intermediate resistance en-route the 0.6800 round figure mark.
On the flip side, 38.2% Fibo. level, around mid-0.6600s, now seems to protect the immediate downside, which if broken might prompt some technical selling and accelerate the slide back towards testing another confluence support near the 0.6600-0.6595 region – comprising of 50-day SMA and 23.6% Fibo. level.
NZD/USD daily chart
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