A daily closure below 0.6750 allowed a quick bearish decline to occur towards the level of 0.6500 which was broken to the downside as well.
However, the levels of 0.6400-0.6350 constituted a significant support zone. Hence, a strong bullish rejection was expressed on January 20 (inverted head and shoulders pattern).
Since January 26, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.
However, a temporary bearish rejection has been expressed around 0.6550 for almost two weeks resulting in a depicted consolidation range.
On January 28, the depicted support level of 0.6400 acted as a prominent key level offering a valid buy entry. A bullish breakout above 0.6550 has been executed earlier this week.
Bullish persistence above 0.6550 (depicted recent support) was needed to keep the price moving towards higher bullish targets. The nearest targeted zone is currently located around 0.6700 - 0.6750.
The area of 0.6700-0.6750 remains a significant resistance zone to be watched for a valid sell entry. Recent signs of bearish rejection were shown during last week's consolidations.
Moreover, a bearish closure below 0.6700 was an obvious SELL signal on the H4 chart. T/P levels should be located at 0.6600, 0.6540, and 1.6495 while S/L should be lowered to 0.6665 (yesterday's highest level) to secure some of our profits.
The nearest support zone for the NZD/USD pair is located at the level of 0.6540-0.6500 where price reaction should be watched for a possible buy entry.
