NZD/USD consolidates above 0.7200, testing key level

Matías Salord FXStreet

The kiwi is among the top performers on Thursday favored by an improvement in risk appetite. NZD/USD jumped during the European session from 0.7195 to 0.7253, hitting the highest level since May 28, 2015, boosted by UK referendum polls.

Afterwards it pulled back but it remains at all times above 0.7200. It found support around 0.7210 and currently it trades at 0.7230/35, up 1.00% for the day, rising for the seventh day in a row. So far in June it has risen 475 pips.

NZD/USD testing medium-term resistance

Two weeks ago the pair managed to confirm the break of the 0.7000 handle to the upside. Now it is trading around 0.7230, that is a relevant technical area. During Q1 2015 it was a strong support and then became a resistance. If the kiwi manages to break above and consolidate on top it could open the doors for more gains. The next relevant resistance could be seen around 0.7500.

If the pair is rejected, a bearish correction could be possible, but as long as it holds above 0.6800 the bullish bias will remain intact.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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