NZD/USD Price Analysis: Holds above 61.8% Fibo retracement, 0.7000 eyed
- Kiwi bulls are firmer above 61.8% Fibo retracement at 0.6957.
- Driving with the upper Bollinger Band (20, 2) adds to the upside filters.
- The RSI (14) has climbed above 60.00 and has set a bullish stage for the asset.
The NZD/USD pair has witnessed a strong upside move after hitting a low of 0.6728 last week. This week the major has extended its gains after overstepping March 7 highs at 0.6926 and has registered fresh yearly highs at 0.6989.
On the daily scale, kiwi bulls are holding above 61.8% Fibonacci retracement (placed from 21 October 2021 high at 0.7219 to January 28 low at 0.6529) at 0.6957. The trendline placed from January 28 low at 0.6529, adjoining the February 14 low at 0.6593, and February 24 low at 0.6630 will continue to provide cushion to the pair.
It is worth noting that the asset is holding the upper band of Bollinger Bands (20, 2), which signals the continuation of a bullish rally.
The Relative Strength Index (RSI) (14) has registered a fresh high at 68.18 which signals more upside ahead. The oscillator is not showing any sign of divergence and an overbought situation.
Should the asset violate Wednesday’s high at 0.6989, the major will be driven towards 18 November 2021 high at 0.7054. Breach of the latter will send the kiwi bulls to the round level at 0.7100.
On the flip side, if the asset slips below weekly lows at 0.6864, bears may get the driving seat and the asset may fall near 20-period Exponential Moving Average (EMA) at 0.6840, followed by 38.2% Fibo retracement at 0.6790.
NZD/USD daily chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
