NZDUSD is trending higher on its 1-hour time frame as it formed higher lows and higher highs inside a rising channel. Price is currently testing support and could be due for a rally to the top of the channel.

Applying the Fibonacci extension tool shows the next potential upside targets. Price could aim for the 38.2% level that lines up with the mid-channel area of interest. A move past this could take price up to the channel top around the 78.6% level or the swing high at the 50% extension. Stronger bullish momentum could take NZDUSD to the full extension around the .6600 major psychological mark.

The 100 SMA is safely above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. Price also found support at the 100 SMA dynamic inflection point that lines up with the channel bottom.

RSI is turning higher to indicate that bullish pressure is picking up, even without seeing oversold conditions. Stochastic is also turning up to show that bullish momentum could return from here and keep the channel support holding.

The Kiwi has been able to take advantage of risk-taking over the past few weeks as data from New Zealand has also been mostly upbeat. This dashes hopes of another RBNZ cut soon, allowing the higher-yielding commodity currency to unwind some of its earlier losses.

Meanwhile, the US dollar has the FOMC statement to contend with, along with the US deadline to impose the next round of tariffs on December 15. Pushing through with this and stoking trade tensions could mean more losses for the dollar, although a return in risk aversion could take its toll on the higher-yielding Kiwi as well.