Kiwi retakes 0.70

03/08/2021

The New Zealand dollar advanced on Tuesday, boosted by the Australian dollar, with the NZDUSD pair pushing above the important 0.70 threshold again.

It looks like the pair has bottomed near the key support of 0.6930, and bulls are now trying to stage a comeback. However, as long as the support of 0.6930 holds, the medium-term outlook seems bullish.

Moreover, there are two additional bullish signs - the price formed what appears to be a rounding bottom, which is a bullish formation. Finally, there is a bullish divergence between the price and the RSI indicator, usually leading to an uptrend momentum.

The key resistance stands at 0.71, and the Kiwi needs to reclaim it to confirm the bullish trend. 

Alternatively, if the NZDUSD pair declines later in the day, it needs to defend the 0.70 support. The next line of defense is at the mentioned 0.6930, and the Kiwi must stay above for bulls to have a chance. 
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