- NZD/USD discards the previous downside momentum and trades higher on Tuesday.
- Additional gains for the pair if price decisively breaks 0.7000.
- Momentum oscillator holds onto the oversold zone with a positive bias.
NZD/USD edges higher on Tuesday in the Asian trading hour. The pair opened lower but recovered swiftly to touch the intraday high of 0.6998.
At the time of writing, NZD/USD is trading at 0.6989, up 0.30% for the day.
NZD/USD daily chart
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On the daily chart, after testing the high of 0.7317 high on May 26, the NZD/USD pair came under selling pressure. The downside momentum intensified further below the 50-hour Simple Moving Average (SMA) at 0.7186.
After that, NZD/USD trades in a broader trading range of 0.6950 and 0.7050. The descending trendline from the mentioned level acts as a barrier for the upside movement.
That said, If NZD/USD is sustained above intraday high, it could win the psychological 0.7000 mark, which also coincides with the bearish slopping line.
A daily close above 0.7000 would allow bulls to meet the 0.7045 and the 0.7075 horizontal resistance levels.
The Moving Average Convergence Divergence (MACD) indicator trades in an oversold zone. Any uptick in the MACD could trigger more buying opportunities in the pair.
NZD/USD would test the high of June 17 at 0.7104.
Alternatively, if price starts moving lower, it could continue with its prevailing trend with the first target in line would be the previous day’s low at 0.6952.
NZD/USD bears would next target the 0.6925 horizontal support level followed by the low of July 20 at 0.6881.