Intraday bias in NZD/USD pair remains neutral for the moment and another rise in the pair is mildly in favor. The breaking of the pair at the 0.6979 level will target a test on 0.7030 high. But we’d be cautious on strong resistance from there to limit upside move and bring another fall to extend the corrective pattern. On the downside, breaking of the pair at the 0.6947 level will resume the decline from 0.6928 and the pair will target a medium-term downtrend.
In the bigger picture, a rise from 0.6944 medium term bottom is seen as a corrective pattern. The current development suggests that it might be completed with waves up to the 0.6979 level. The breaking of the level should see the pair rise to 0.7030 will firm this bullish case. A decisive break of 0.6972 key cluster supports will confirm and bring retest of this level. In case, arise from the 0.6944 level will resume and extend. A strong resistance should be seen at the 0.7030 level to limit an upside move.
The Kiwi bulls have taken a step forward having spent the past two weeks with the downtrend rally. A current strong bull candle broke out to close above the 0.6979 level. This is not only a good support area, but also breaks a downtrend back since the second week of this month and takes the market above the for the first time since early of this month. If the bulls confirm this breakout above the 0.6979 level then the upside for a continued recovery will be open the key high at the 0.7030 level. The four hourly charts show a strong configuration on momentum and further corrections will be seen as a chance to buy. The reaction to today’s early unwind will be interesting at support level above 0.6979. A failure below support at the 0.6944 level would re-open the bear control once more.
The NZD/USD pair tested the key support level at 0.6944 and kept its stability above it showing some bullish bias in an attempt to resume the main bullish trend. We keep waiting for the pair to breach at the 0.6979 level to get rid of the negative pressure and continue rising on the short-term basis.
Therefore, we will keep our bullish overview conditioned by holding above 0.6979, noting that breaching this level will push the price towards the 0.7030 level that represents our first main target.
The pair’s expected trading range for today is between the 0.6979 support and 0.7030 resistance levels.
Expected trend for today: Bullish
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This article was originally posted on FX Empire