NZD/USD advances following the rebound on 0.7152; bullish correction on the way.
NZD/USD skyrocketed over the last couple of hours and jumped above the 0.7260 critical level which overlaps with the 38.2% Fibonacci retracement level of the down-leg from 0.7435 to 0.7152, posting a one-week high.
The rebound on the 0.7152 support barrier helped the price to create a strong bullish day surpassing the 20 and 40 simple moving averages (SMAs) in the 4-hour chart. Having a look at the momentum indicators, the RSI and the MACD seem to be in agreement with the bullish scenario. The RSI indicator is pointing north above the 50 level, while the MACD oscillator is rising in the negative territory and surged above its trigger line.
Further gains should see the 0.7285 level acting as a major resistance as this also slightly below the 50.0% Fibonacci mark near 0.7293. A jump above this level would reinforce the bullish structure in the short-term and open the door towards the next key level of the 61.8% Fibonacci of 0.7367.
In the event of a downside reversal, the 23.6% Fibonacci level could act as a barrier before the pair would be able to re-challenge the 20-SMA around the 0.7200 handle. A break below this level would shift the short-term outlook to a more neutral to bearish one as it would take the price near the 0.7152 support.
All trading involves risk. It is possible to lose all your capital
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.