NZDUSD has shifted to a neutral stance on the 4-hour chart, after a strong rally that took prices to a 5-month high of 0.7345 on June 30.
An uptrend took place when prices bounced from the May 11 low of 0.6816, but upside momentum stalled and RSI fell back below 50 into bearish territory. The oscillator stopped declining and is currently moving sideways, suggesting that NZDUSD is now in a consolidation phase.
The risk has tilted to the downside since the Tenkan-sen line crossed below the Kijun-sen line on July 4. NZDUSD is currently trading within the Ichimoku cloud and support was provided at 0.7253 after prices fell briefly below the cloud. Further support is located at the June 22 low of 0.7196. From here, an early June support level at 0.7114 comes into view. A drop below 0.7055 would change the current bullish market structure.
A move back above resistance at the Kijun-sen line and key level of 0.7300 would open the way for a re-test of the 0.7345 high and from here there would be a resumption of the recent uptrend to target the February 7 high of 0.7374.
NZDUSD is neutral in the short-term as long as prices remain above 0.7250. The overall market structure on the 4-hour chart remains bullish.
