Next to the greenback, the New Zealand dollar had a bullish spike during yesterday’s trading session. The NZD/USD is completing a bullish month, covering the losses of August, while it touched the 50-month SMA. This current month the commodity currency pair is surging more than 2% and on Wednesday the price reached a seven-month high near 0.7430.
From the technical point of view, on the daily timeframe, the price successfully surpassed the 50-SMA, which is approaching the 100-SMA to create a bearish crossover. The MACD oscillator entered into the positive territory, whilst the RSI indicator holds in the bullish area but is sloping to the downside. Moreover, the stochastic oscillator posted a downward crossover with its moving averages indicating a falling move. Our prediction is a downside tendency if the price slips below the 50 and 100 SMA until the 0.7180 support barrier. However, if the day returns to bullish we may see an upside movement towards the 0.7430 resistance handle.