NZD/USD surges to weekly R1 at 0.7340

Contrary to expectations, a recently formed downtrend did not sustain for long. Namely, in the second half of Wednesday the Kiwi has successfully left the channel in the northern direction, bypassing the 100- and 200-hour SMAs. However, a more intensive surge began in the early Thursday's morning, when the currency rate ran though the weekly PP and approached the weekly R1 at 0.7340. Most probably, the pair will a make a rebound near this resistance level and after that fall back to the above weekly PP, which by this time should be already accompanied by the all three 55-, 100- and 200-hour SMAs. This scenario is supported by various technical indicators, which suggest that the rate is overbought.