NZD/USD extends gains and eyes 0.7300

NZD/USD erased all losses and climbed toward 0.7300. On a wider perspective, it continues to move sideways, limited in both directions.

Change in intraday trend

At the beginning of the day, the pair dropped to 0.7207 but then amid a weaker US dollar turned to the upside. It moved further north during the European session and erased all losses. On American hours it continued to move higher and peaked at 0.7293, the highest level since last Thursday. Currently, it trades at 0.7270/75, up more than 50 pips from Friday’s closing price.

In a range

On a bigger time frame analysis the pair still holds  bullish bias, but in the short-term, it is moving sideways. The rally that started a few weeks ago found resistance at the 0.7300 zone. It traded on top but only momentarily. The kiwi needs a consolidation significantly above 0.7300 to clear the way to more gains.

On the opposite direction. The 0.7200 handle has been offering support since last week. A break below could lead to a bearish correction.