Intraday bias in the NZD/USD pair remains upward for the moment and another rise is mildly in favor. Breaking of the pair at the 0.7001 level will target a test on the 0.7038 high. But we’d be cautious on a strong resistance from there to limit an upside movement and will bring another fall to extend the corrective pattern.
On the downside, the pair breaking at the 0.6980 level will resume the decline from the 0.6980 level and will target a medium term downtrend. In the bigger picture, a further rise from the 0.6980 medium term bottom is seen as corrective pattern. The current development suggests that it might be completed with waves up to the 0.7001 level. Breaking of the pair at this level should see the pair rise to the 0.7038 level which will firm this bullish case.
A decisive break at the 0.6980 key cluster support confirms and brings retest of this level. In case, a further rise from the 0.6980 level will resume and extend a strong resistance which can be seen at the 0.7038 level to limit upside. Having spent the past two sessions with the upward rally, the kiwi bulls continue with the forward momentum on the current strong bull candle and breaks out to close above the 0.6980 level. This is not considered as a good support area. The pair also breaks the downtrend dating back since the second week of this month and takes the market above this level for the first time since early of this month.
If the bulls confirm this breakout above the 0.6980 level, then the upside for a continued recovery will be open. This would then open the key high at the 0.7038 level. The pair’s four hourly chart shows a strong configuration on momentum and corrections will now be seen as a chance to buy. The reaction to today’s early unwind will be interesting. The pair trading at the support level above the 0.6980 comes in.
A failure below support at the 0.6980 level would reopen the bear control once more. The NZD/USD pair has tested the key support at the 0.6980 level. This kept its stability above it showing some bullish bias and attempt to resume the main bullish trend. The pair waits to breach at the 0.6980 level to get rid of the negative pressure and continues to rise on the short term basis. Therefore, we will keep our bullish overview conditioned by holding above the 0.6980 level. The pair breaching at this levels will push the price towards the 0.7038 level that represents our first main target.
The pair’s expected trading range for today is between the 0.6980 support and 0.7038 resistance levels.
Expected trend for today: Bullish
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