The NZD/USD moves in the previous day’s trading range and consolidates near the higher levels. The pair is accumulating in a 30-40 pips trading band for the past two sessions.At the time of writing, the NZD/USD pair is trading at 0.7242, down 0.12% on the day.
- NZD/USD consolidates below 0.7250 in the Asian session.
- More gains likely to be added towards 0.7300.
- Neutral momentum oscillator tilts in favor of upside momentum.
On the daily chart, the pair has been confined in a trading range between 0.7200 and 0.7250, more gains could be seen if price decisively breaks above the higher trading band level. In doing so, the NZD/USD bulls would first seek the May 12 high at 0.7283 immediately.
The Moving Average Convergence Divergence (MACD) indicator reads above the midline with a neutral stance. A slight uptick would encourage the bulls to retest the May 10 high at 0.7306. It would further offer the opportunity to grab the 0.7350 horizontal resistance level.
Alternatively, if price makes a sustained move below the session’s low at 0.7239, then it could strengthen the downside outlook toward the previous day’s low at 0.7197, followed by the 38.2% Fibonacci retracement level at 0.7167. The price action could mark the reversal of the prevailing trend and would offer the May 13 low at 0.7134 next in the wing.