NZDUSD Stages Strong Rally to 1-Year High
NZDUSD staged a strong rally early on Thursday to reach a one-year high of 0.7146. The pair turned more bullish after clearing some important barriers. There was a daily close above the key 0.70 level on Wednesday. Prices also cleared the April 19 high of 0.7053 and the 0.7100 level. There is scope to target the next key level at 0.7200.
The daily RSI is trending up but is entering overbought territory, which suggests that there could be some consolidation or a pullback in the near term. Support to the downside lies at the levels that previously acted as resistance (0.7053 and 0.7000).
As long as prices remain above the 0.70 level, this would keep the medium term bullish outlook and would see a resumption of the uptrend that started from 0.6346 back in January.