NZD/USD increased in the short term but the upside is still uncertain. The pair has rallied as the DXY has dropped. Still, we need strong confirmation before deciding to go long on this pair.
Technically, it's located below strong resistance levels. Only a valid breakout may announce a broader upwards movement. The US data released during the week could be decisive. The buyers need a bullish spark to get confirmation that NZD/USD will resume its growth.
Technically, it's trapped within an extended range. In the short term, it could continue to move in range.
NZD/USD Upside Still In Cards!
NZD/USD has rallied and now is traded at 0.7041 far above the 0.7016 weekly pivot point. Its failure to approach and retest the ascending pitchfork's lower median line signaled strong buyers in the short term.
The near-term upside obstacles are seen at the weekly R1 (0.7080) and at the median line. Also, the 50% retracement level is seen as a major static resistance. NZD/USD could still increase as long as it stays within the ascending pitchfork's body.
NZD/USD could develop a broader upwards movement, a bullish reversal if the price makes a valid breakout above the median line of the ascending pitchfork and through the 50% (0.7098) level.The material has been provided by InstaForex Company - www.instaforex.com