• Advancing 20- and 50-period EMAs are adding to the upside filters.
• Kiwi bulls are firmer above Bullish Flag formation.
• The RSI (14) has shifted into a bullish range of 60.00-80.00

The NZD/USD pair has witnessed a rebound after hitting a low of 0.6340 in the early European session. The asset has observed a sheer upside from the last week after hitting a low of 0.6217. On a broader note, the asset is oscillating in a wide range of 0.6333-0.6376.

On an hourly scale, the asset is forming a Bullish Flag that signals a continuation of bullish momentum after a rangebound phase. Usually, a consolidation phase denotes intensive buying interest.

The 20- and 50-period Exponential Moving Averages (EMAs) at 0.6350 and 0.6330 respectively are scaling higher, which adds to the upside filters.

Meanwhile, the Relative Strength Index (RSI) (14) is oscillating majorly in a range of 60.00-80.00, which signals that bullish momentum is still intact.

A break above the May 7 high of 0.6376 will trigger the formation of the Bullish Flag chart pattern, which will drive the asset towards the round level resistance at 0.6400, followed by the May 6 high at 0.6458.

On the flip side, kiwi bulls could lose momentum if the asset drops below the 50-EMA at 0.6330. This will drag the asset towards May 10 low at 0.6276. Violation of the May 10 low will further push the asset lower to the March 12 low of 0.6217.

NZD/USD hourly chart