- A new higher high and a valid breakout above the UML suggests buying with a higher target at WL1!
NZD/USD is trading in the red as we speak but the upside bias remains intact despite any temporary decline. The pair flirts with a strong resistance area after failing to validate and activate a larger correction.
Breaking above the immediate upside obstacles could bring a great trading opportunity and could confirm broader growth. USD is in a critical situation again after several bad US economic data reported lately. USDX is vulnerable to drop deeper in the short term, so NZD/USD could jump higher if this scenario takes shape.
NZD/USD Still Bullish!
NZD/USD remains bullish after failing to stabilize under the 23.6% retracement level and below the descending pitchfork's median line (ML). It's trapped within a narrow range on the H4 chart and between the upper median line (UML) and the median line (ML).
An upside breakout from the extended range and above the descending pitchfork's upper median line (UML) brings a long opportunity and signals a further increase towards 0.7400.
Forecast &Tips!
Buy NZD/USD if the price jumps and closes above the R1 (0.7255) and above the upper median line (UML). Escaping from the descending pitchfork's body signals that the pair could be attracted by the first warning line (WL1).
An upside breakout and a new higher high could lead the rate higher towards 0.7350 and 0.74 levels.
Selling will be possible only if NZD/USD drops again under the S3 (0.7096) and below the median line (ML).
