NZD/USD technical analysis: Move beyond 100-DMA/0.6700 handle to open room for strong follow-through
Our preference: the upside prevails as long as 0.6673 is support.
Alternative scenario: the downside breakout of 0.6673 would call for 0.6652 and 0.6639.
The NZD/USD pair maintained its bid tone for the fourth consecutive session on Wednesday and is hovering around
the 0.6685-90 strong horizontal resistance.
This is closely followed by the 0.6700 confluence region – comprising of 100-day SMA and 50% Fibonacci retracement level of
the 0.6939-0.6482 recent bearish slide.
Technical indicators on the daily chart are holding comfortably in the bullish territory and are still far from pointing to overbought conditions,
supporting prospects for an
eventual bullish breakout and an extension of the positive momentum.
A convincing break through the mentioned barrier now seems to set the stage for a follow-through up-move towards the 0.6800 round figure mark,
which coincides with 61.8% Fibo. level and might now be the next major hurdle for bullish traders.