Kiwi Strength Builds as NZDUSD Recovery Continues

NZDUSD is pushing nicely to the upside since the start of the month, after we identified a completed ending diagonal around 0.5681. From there, we’ve seen a strong and impulsive reversal, which suggests the market has turned bullish, at least temporarily.

This type of structure usually points to more upside within a higher degree A-B-C recovery, ideally in wave D, which could target the upper side of the broader triangle around 0.5960 to 0.6010. That zone may act as resistance where the upside could be limited within ongoing triangle as shown on a daily chart. So, in the near term, there still appears to be room for more upside after the current wave B pullback. It's now approaching the strong support around 0.5800 level, from where we would expect another leg higher within wave C as long as the price stays above the recent lows.