The NZD/USD pair is seeing its best daily advances in three months.
For the bulls, a sustained break of the monthly trend line is required, as is the use of the 21-day moving average.
Sellers will be patient until the price falls below 0.6920 on a daily basis.
In the early hours of Wednesday, NZD/USD buyers kept the reins around 0.7015, up 1.05 percent intraday, the highest intraday gain since April 14.
Following the Reserve Bank of New Zealand’s (RBNZ) hawkish tilt earlier in Asia, the kiwi pair quickly overcame immediate hurdles, including the 21-DMA and a declining trend line from mid-June.
Bullish MACD signs support the breakout, although NZD/USD buyers will need a daily close above 0.7005 to signify another struggle with the crucial 200-DMA hurdle around 0.7075.
The monthly high around 0.7105 should rapidly return to the charts if the quotation crosses the 0.7075 DMA resistance.
In the meanwhile, any failure to close above 0.7000 may tempt sellers to target the recent lows around 0.6920.
It should be highlighted, however, that the quote’s extended decline beyond 0.6920 makes it vulnerable to a retest of the September 2020 highs near the 0.6800 level.
Expect more gains in the future./n
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