- NZD/USD has been consolidating gains near 0.7200.
- Further recovery targets seem limited at 0.7220.
- Bullish MACD signals some upside gains.
The NZD/USD pair manages to hold onto the 0.7200 level, a key psychological yardstick in the Asian session.
At the time of writing, NZD/USD is trading at 0.7204, up 0.10% on the day.
NZD/USD daily chart
On the daily chart, the pair has been consolidating gains around the 0.7200 level and is looking to extend towards the high of April 21 in the vicinity of 0.7220. The ascending trend line, which looks to lengthen from the lows of April at 0.6945, acts as a wall of defence for NZD/USD bulls.
If prices move above Monday’s high near the 0.7215 area, then the first resistance level would emerge near April 30 highs at 0.7255, followed by highs of April 29 in the neighbourhood of 0.7290. The Moving Average Convergence Divergence (MACD) indicator reads above the midline, and maintains momentum in favor of the bulls, making it easier to reach out to the 0.7300 horizontal resistance zone.
As price moves downwards, NZD/USD would test the first stoppage near 0.7175 horizontal support zone, which coincides with the breach of the ascending trendline. This might lead to a drop towards the 50-day moving average (DMA) placed at 07150. Finally, prices could retest the lows of April 19 near the 0.7120 region.