- The NZD / USD returns the initial gains after the rejection just below the 0.73 level with a firmer USD.
- NZD / USD pulls back after entering RSI overbought territory on the 1 hour chart.
- Support at the 21-hour SMA is the key for the pair’s bulls.
The NZD / USD pair has returned early Asian session gains to fresh eight-week highs at 0.7287 as the US dollar is attempting to rally after the Fed-induced slide. At the time of writing, the pair is mostly holding. unchanged on the day around the 0.7260 region.
Meanwhile, the recent surge in commodity prices and stock markets also benefits the higher-performing NZD against the US dollar.
The latest downward movement in the pair can be attributed to the overbought conditions on the RSI, as the oscillator has turned down and dragged the price down.
Looking down, the pair is looking to test the support of the 21-hour moving average at 0.7243.
A break below that level could expose the 0.7200 demand area, which will act as strong support.
On the other hand, if the 21-hour SMA holds, the bulls could attempt another bounce towards the multi-week highs of 0.7287, above which the round level of 0.7300 could be challenged.
A sustained move above this level could target the March high of 0.7308.
NZD / USD chart and 1 hour
NZD / USD technical levels
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