Currently the NZD/USD is forming a triangle pattern, break and close above the 0.6548 recently printed high, could be a strong confirmation of the buying pressure.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
This analysis was done on MetaTrader 4.
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Analysis Details:
NZD/USD symbol on the MT4 platform
Type: Bullish
Key support levels: 0.6522, 0.6488
Key resistance levels: 0.6548, 0.6600
Price Action:
In the daily timeframe, the uptrend is obvious as the price continues to produce higher highs and higher lows, while remains above the 200 Exponential Moving Average. Moreover, on August 12, the price has cleanly rejected the 61.8% Fibonacci retracement level at 0.6522. NZD/USD attempted to break lower, produced several spikes below the 0.6522 support, although there was no daily close below the support.
This goes to show that bulls are strongly defending 0.6522 demand zone and as long as price remains above the 0.6488 low produced on August 20, NZD/USD uptrend should be expected to continue. This might result in price moving up towards the key resistance area near 0.6685 as can be seen on the chart.
If we move to the lower timeframe, the 1-hour chart, when price tested the bottom at 0.6688, it rejected the lower trendline of the descending channel along with the average price downtrend trendline. Currently, NZD/USD is forming a triangle pattern, break and close above the 0.6548 recently printed high, could be a strong confirmation of the buying pressure.
However, even after the break above the current resistance, NZD/USD might return down, to re-test the 0.6522 support, before/if it will continue rising. But as has been mentioned, only break and close below the 0.6488 will completely invalidate bullish outlook.
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