- The NZD/USD pair maintained its bid tone for the fourth consecutive session on Wednesday and is hovering around the 0.6685-90 strong horizontal resistance.
- This is closely followed by the 0.6700 confluence region – comprising of 100-day SMA and 50% Fibonacci retracement level of the 0.6939-0.6482 recent bearish slide.
Technical indicators on the daily chart are holding comfortably in the bullish territory and are still far from pointing to overbought conditions, supporting prospects for an eventual bullish breakout and an extension of the positive momentum.
A convincing break through the mentioned barrier now seems to set the stage for a follow-through up-move towards the 0.6800 round figure mark, which coincides with 61.8% Fibo. level and might now be the next major hurdle for bullish traders.
Meanwhile, any rejection slide from the current resistance zone now seems to attract some fresh buying near the 0.6600 round figure mark, which if broken might negate the near-term constructive set-up and again turn the pair vulnerable.
NZD/USD daily chart