NZD/USD: Better bid after bullish outside day candle

• Kiwi rises to 50-day moving average after bullish outside day candle.
• A close above 0.7303 would confirm a bullish breakout.

NZD/USD created bullish outside day candle on Tuesday, i.e. price action engulfed the high/low of the previous day and has risen above the 50-day moving average (MA) of 0.7284 in the Asian session today.

The positive follow-through to the bullish candlestick pattern is encouraging, however, only a close above 0.7303 (March 27 high) would confirm a bullish breakout.

That said, the data New Zealand data calendar is empty, hence the spot is likely to track the action in the AUD/USD and broader market sentiment. As of writing, the spot is trading at a session high of 0.7287.

AUD/USD Technical Levels

A close above 0.7303 would allow a sustained rally to 0.74 (psychological level) and 0.7437 (Feb. 16 high). On the downside, a convincing move below 0.7244 (200-hour MA) could yield a pullback to 0.7195 (support on hourly chart). A violation there would expose 0.7153 (March 21 low).