Target resistance at the 0.7315
The NZDUSD is racing higher after the RBNZ signaled that rates could rise by Q3 of 2022. That surprise market and the NZD pairs all raced higher.
Looking at the daily chart, the price moved above the May high at 0.73043. But stalled right near the January 6 high of 0.73148. The high price today reached just above that level at 0.73157 and has backed off modestly. The pair has traded in a narrow range between 0.7290 and 0.73157 over the last nine hourly bars. A move above the 0.73215 area would open the door for a potential run toward the high for the year reached at 0.74642. Off the daily chart, the April high comes in at 0.72859. The mid-March swing high comes in at 0.72689. Those would be support targets. As mentioned the low after the run higher, has stalled just above the 0.72859 level at 0.7290.
Drilling back down to the 5-minute chart, the run run higher and corrective move off the high did initially find support against its rising 100 bar MA on that chart (see blue line in the chart below). The consolidation has allow that moving average to move even higher and more recently the price has traded below that moving average line, but remains comfortably above the corrective low. The price is also currently back above the upper swing area between 0.7311 and 0.73165 (see red numbered circles).
Buyers are making another play at cracking the topside resistance. Can they muster support in the North American session?
If the try fails and the price starts to trade more comfortably below the 100 bar moving average (and maybe below the 0.7300 natural support level), the buyers could look to exit and the market start to probe lower levels and perhaps test that 0.72859 support from the daily chart.
