NZD/USD follows bullish tendency; next level up at 0.7420.
NZD/USD is moving lower over the last couple of hours after the bullish run it created in the previous days. However, the aggressive buying interest pushed the price above the key level of 0.7350 and posted a 2-week high of 0.7410, indicating further upward tendency.
Short-term momentum indicators are also pointing to a continuation of the bullish bias. However, the RSI is near the 70-overbought level at 64, suggesting that the latest upswing may be running out of steam and that the risk of a near-term correction is high. The MACD oscillator is still moving with strong momentum in the bullish zone.
If prices extend the upside pressure, immediate resistance could come at 0.7420. Above that, the price could hit the 5-month high of 0.7436.
On the flip side, in the event of an upside reversal, the next level to watch is the 0.7350 support obstacle. A penetration to the downside of the aforementioned barrier could open the door for the 20 and 40 simple moving averages of 0.7300 and 0.7272 respectively, in the 4-hour chart.
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