NZDUSD maintains the underlying bullish trend that started from the January low of 0.6346 to the September high of 0.7484.
The market reached overbought levels at this peak as is indicated by RSI which rose to 70. Upside momentum in the market clearly faded and prices dropped but the reversal failed to gain traction and stalled just above the 50-day moving average, which acted as support.
Immediate support lies at the key 0.7300 level. Below this the 50-day moving average which is currently at 0.7220 continues to act as support as well as the key 0.7200 level below it.
From current levels, the main resistance will be the 0.7484 high and then the 0.7560/75 area (previous highs from May 2015).
The underlying bullish market structure will be maintained unless there is a drop below 0.6950 and below the 200-day moving average area at 0.6900. A decline from these levels could indicated the start of a reversal in the uptrend from January.
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