NZD/USD (a 4-hour chart)
The kiwi strengthened due to the better-than-expected Consumer Price Index report and a weaker dollar.
The pair had a positive day on Tuesday. The NZD/USD extended its bullish momentum, struggling with 0.7200 to move higher. The price tried to break the bearish 200-EMA which limited its growth in the 4 hours chart. The 200-EMA is neutral, the 50 and 100 EMAs are turning upwards, following the price. The resistance is at 0.7200, the support stands at 0.7120.
MACD is in the positive area. The histogram grew which indicates the buyers’ strength. The RSI is in the overbought area.
If bulls retain control and breaks above 0.7200 the NZD/USD pair will strengthen towards 0.7250. If the price fails to reclaim the level 0.7200, then this could lead to renewed selling momentum, possibly towards 0.7120.