XM Investment Research Team
XM
NZDUSD has staged a strong rally since rebounding from below the key 0.7000 level to steadily rise this week to reach a high of 0.7158 early on Wednesday.
RSI is rising and is in the process of breaking above the 50 line into bullish territory which suggests that upside momentum in NZDUSD has more room to go. But there is resistance at the 50-day moving average currently at 0.7165. A successful daily close above this would open the path towards another resistance at the 38.2% Fibonacci retracement of the May to September upleg from 0.6674 to 0.7484. This resistance lies at 0.7175 and a break above this would bring a key psychological level at 0.7200 into view, which would also act as a resistance level.
The short term bullish phase would remain intact if the market remains above the 50% Fibonacci (0.7079). Below this level, the 200-day moving average will offer support at 0.7042. A break of the key 0.7000 level would increase the chances of further downside and would shift the bias to a bearish one.
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