NZD/USD PRICE ANALYSIS: UPSIDE NEEDS VALIDATION ABOVE 0.7200

• NZD/USD edges higher on Thursday in the early European trading hours.
• Additional gains for the pair if the price decisively breaks 0.7200.
• Momentum oscillator holds onto the oversold zone with upside bias.

NZD/USD prints gains on Thursday in the initial European trading hours. The pair recovered from the lows of 0.7151 and touched the high of 0.7180. At the time of writing, NZD/USD is trading at 0.7177, up 0.14% for the day.

NZD/USD daily chart

On the daily chart, the NZD/USD pair has been on the bull run since October 13, after testing the low of 0.6911. The spot faces pressure near 0.7220, critical resistance zone.

A daily close above the psychological 0.7200 level would meet the next resistance level at 0.7220. The Moving Average Convergence Divergence (MACD) indicator trades in an oversold zone. Any uptick in the MACD could trigger more buying opportunities in the pair to reach the 0.7250 horizontal resistance level.

Next, the bulls would be moving in a fresh upside momentum to recapture the high of May 31 at 0.7285.

Alternatively, if the price breaks below the intraday low it could test the 0.7120 horizontal support level followed by the low of October 19 at 0.7079. The NZD/USD bears would next target the 0.7050 horizontal support level.