NZDUSD remains inside the medium-term bullish channel since last March. The last few days NZDUSD was challenging and trading near the lower channel boundary close to 0.71-0.7150 support area. We mentioned before that as long as price is above 0.7150-0.7120 bulls remain in control of the trend.

NZDUSD has broken above 0.72 and is moving higher. This kind of price action is bullish as long as price is making higher highs and higher lows. The lower channel boundary is respected and despite the bearish divergence warnings by the RSI, there is no reversal signal given by price action. Price continues to respect support. Next important resistance is at 0.7325. If this resistance is broken the NZDUSD will surely move towards 0.7380 and maybe to new highs. Until then bulls need to pay close attention to the 0.7150 support and stay above it. Bears need to break this support in order to hope for a move towards 0.69.