NZD/USD - little chance of stopping until 0.7300

Price continued to reach new heights on NZD/USD last week, with price touching 0.7115 on Friday. A small retracement was experienced at the start of the week, which took price back down to retest the support at 0.7030. This support held and sent price back up to 0.7100, where it then sat comfortably for the remainder of last week. Although the ascending 4H trend line was broken, it did not provide enough bearish sentiment to cause any meaningful pullback in the overall bullish trend.

With the small bearish pullback at the start of last week, it could be argued that a lower high was formed in the process, albeit minimal in nature. With prices still far above any ascending trend lines on the daily and weekly timeframes we feel there is more room for prices to fall should it be required. However, with the sideways moves experienced it does mean that indicators, such as the RSI are no longer overbought on the daily and 4H timeframes, which also means that, should the pair want to move higher, it has more of a capacity to do so in the coming week.