Yesterday’s decline in risk assets failed to send the Kiwi below the strong support of 0.71, which resulted in a strong bounce today.
At the time of writing, the NZDUSD pair was up 0.7%, trading at around 0.72 during the US session.
In addition, the short-term uptrend line at 0.7120 provided support too and helped to stop selling.
The key resistance in the 0.7260 zone could be in play again if the current short-term bullish momentum persists over the next few days.
From the medium-term perspective, bulls will most likely want to reach the current cycle highs of 0.7450.
Alternatively, if sentiment worsens again, the 0.7120/0.71 area should offer enough support. If not, the next level to watch should be near 0.7040