The NZD/USD has edged higher today and have touched new highs, the currency pair has opened with a gap up today and has jumped above the previous high. The pair has retreated a little in the last hours, but the perspective remains bullish because the rate has finally managed to jump above a very strong confluence area. Personally, I’m expecting to see a short consolidation here before the rate will resume the upward movement, the US dollar remains under selling pressure on the short term as the USDX has plunged again today.
The currency pair has edged higher after the Reserve Bank Governor Graeme Wheeler speech, the rate was driven higher by fundamental factors, the USD data has come mixed today, but has lifted the greenback a little, but most likely the NZD/USD will climb much higher after a short decrease and consolidation.
The price has managed to jump above the 0.7277 horizontal resistance and above the upper median line of the descending pitchfork, we had a very strong confluence there at the intersection by the 0.7277 resistance with the upper median line (uml), the rate has finally climbed above this obstacle after several breakout attempts.
The pair has jumped even above the 0.7324 swing high, but wasn’t able to stabilize there, the bears have pushed the rate again below this major obstacle, you can see that the rate has climbed also above the 50% Fibonacci line (ascending dotted line), which represents a very strong dynamic resistance, right now is challenging this upside obstacle because the bulls were unable to maintain the rate above this level.
Personally I would like if the rate will come down to retest the broken upper median line (uml) of the descending pitchfork before will resume the upward movement, we could have a very good buying opportunity if the rate will come to test the confluence area formed at the intersection of the lower median line (LML) of the ascending pitchfork with the upper median line of the descending pitchfork, the upside target remains at the median line (ML) of the ascending pitchfork.