NZD/USD maintains its lead near the intraday high.
Bulls are backed by a sustained break of a seven-week-old trend line to attack the immediate resistance line, with the 200-day moving average acting as the primary barrier.
The seller’s entry becomes critical if the monthly horizontal support breaks to the downside.
Following the RBNZ core inflation model-based data release on early Friday, the NZD/USD picks up bids to 0.7017, up 0.47 percent intraday. The Kiwi pair maintains its upside break of a downward sloping trend line from late May, despite bullish MACD.
However, around 0.7035, a short-term resistance line from late June protects the quote’s immediate upside.
The 200-DMA level of 0.7080 is also posing a challenge to the NZD/USD bulls, as a breach would rush to refresh the monthly peak near 0.7105 before challenging the early June low near 0.7125.
Meanwhile, a break below the prior resistance near 0.6980, which was established in late May, should reawaken the bears, although confirmation from the 0.6920 horizontal rest-zone is required to re-establish the yearly low.
Overall, the NZD/USD remains on the offensive, bolstered by solid fundamentals, but a breakout is required to entice bulls.
Expect more gains in the future./n
Read More
