NZD/USD - is in Progress of a Sharp Upward Run - Four Positive Days - 05/23/2017 (GMT)

The best performing currency versus the U.S. dollar, yesterday, was the New Zealand dollar as it surged more than 1.4% so far this week. The NZD/USD pair is recording the fourth positive day in a row and had a strong jump over the last trading periods. Early this morning, the commodity currency pair hit the 100-daily SMA and created a small retracement.

Our expectation is a further upside tendency if the pair climbs above the aforementioned obstacle until the 0.7090 resistance barrier. However, the 200-daily SMA is also acting as a strong resistance near the 0.7070 price level. On the other hand, if the retracement continues we could see a retest of the 0.6970 support handle. The technical indicators are endorsing the bullish attitude. The RSI indicator entered the positive territory with strong momentum whilst the MACD oscillator is rising and jumped above the zero line.