NZD/USD rises to 0.7180, eyes 0.7200

NZD/USD is rising for the second day in a row, recovering after Friday’s sharp decline and ahead of Thursday RBNZ decision. After the beginning of the American session it broke above Asian session highs and peaked at 0.7180. The pair still holds a bullish tone and it was trading at 0.7160/65, up 30 pips from yesterday’s closing price.

A weak greenback in the market boosted NZD/USD to the upside. The US dollar is lower across the board as equity prices climb amid a risk appetite global environment. In Wall Street, the Dow Jones is up 0.28% and the Nasdaq gains 0.46%.

More gains ahead?

The pair is about to test a downtrend line from August highs that currently stands around 0.7185;  a break higher could open the doors for more gains. The next resistance could be seen at 0.7200, followed by 0.7220 (Aug 5 high). On the opposite direction, support now could be located at 0.7160 (Asian session high), 0.7140 (20-hour moving average) and 0.7110 (daily low).