NZD/USD is testing key resistance around 0.6580-85 currently
The high for the pair today touched 0.6590, which is the highest level since January as buyers are looking to extend the upside momentum back above 0.6600 currently.
The June highs at 0.6580-85 are the key spot to watch today, and buyers will be hoping to secure a daily break above that as well as a close above 0.6600 for added conviction in keeping the run higher going.
The upside run in June stalled and consolidated around 0.6400 to 0.6500 for the most part but we are starting to see price action break out more meaningfully this week and now buyers are setting up a key technical test in the second-half of the week.
A break above 0.6580-85 and a firm run above 0.6600 will open up a fresh range for NZD/USD potentially towards the 31 December 2019 high @ 0.6756 next.
For now, the pair is sort of flirting with the key resistance level a little bit with European stocks keeping higher but US futures are still in a more tepid mood for the most part.
I reckon all eyes will be on US trading once again to see if we will get more of a clue on which risk direction the pair chooses to follow later in the day.
