- NZD/USD regains traction on Thursday amid some renewed USD selling bias.
- The set-up favours bullish traders and supports prospects for additional gains.
- Any pullback might be seen as a buying opportunity and help limit the downside.
The NZD/USD pair edged higher during the early North American session, with bulls making a fresh attempt to build on the momentum further beyond 100-day SMA resistance near the 0.6200 mark.
Looking at a slightly broader picture, the pair has been trending higher along an upward sloping channel over the past two months or so, supporting prospects for a further appreciating move.
The constructive outlook is further reinforced by the fact that oscillators on the daily chart have managed to hold in the bullish territory and are still far from being in the overbought zone.
Hence, some follow-through strength towards challenging the ascending channel resistance, currently near mid-0.6200s, now looks a distinct possibility amid the prevalent selling bias around the USD.
The mentioned barrier is closely followed by the 61.8% Fibonacci level of the 0.6756-0.5470 downfall, which if cleared might be seen as a fresh trigger for bulls and pave the way for additional gains.
On the flip side, any meaningful pullback might still be seen as a buying opportunity. Dip-buying should help limit the downside near a previous resistance breakpoint, around the 0.6150 region.
NZD/USD daily chart
Technical levels to watch