Intraday Market Analysis: NZD Remains Bullish.
NZDUSD surges above consolidation range
The New Zealand dollar soared after the RBNZ hinted at an interest rate hike next year. Strong momentum above 0.7300 has enabled the kiwi to break free of a six-week-long consolidation.
This is a confirmation that the pair is still in an uptrend.
February’s high at 0.7465 would be the target as volume builds up. That said, an overbought RSI may lead to a brief pullback, or rather an opportunity for the bulls to have a stake in the rally.
0.7220 is the closest support to keep the bullish impetus relevant.
EURUSD supported by bullish trendline
The euro continues to play a catch-up game as restrictions ease across the block. The pair has climbed along a rising trendline from late March.
The bullish breakout above the key daily resistance at 1.2240 indicates that buyers are still in control of the action. A temporary retracement would allow an overextended RSI to return to neutrality.
Bids may be expected in the demand area between 1.2160 and the trendline. A close above 1.2260 could clear the path towards the peak at 1.2350.
USOIL hovers under major resistance
WTI crude bounced back after the EIA stocks report showed a drop of 1.7 million barrels. Price action has come under pressure in the supply zone between 66.50 and 67.00.
An overbought RSI near a resistance would prompt short-term traders to take some chips off the table. The immediate support at 64.30 is where buyers may start to buy the dip.
Sentiment remains bullish as long as the crude price is above the daily support at 61.70. On the upside, a breakout above 67 could extend the rally to 68.