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Technical analysis for the NZD/USD, the pair broke out of consolidation, breaking above the 0.6980 with a strong bullish impulse. The first target of this bullish breakout is the 1.272 FIB extension at 0.7035, and it was reached. The second target is the 0.500 FIB retracement on the weekly chart at 0.7060. The third target of this bullish run is the resistance zone between 0.7090 – 0.7105, where the NZD/USD is facing descending trend line as resistance.
If the NZD/USD pair breaks above the resistance zone between 0.7090-0.7105 and above the descending trend line on the daily chart, it will be a strong bullish signal. Such a breakout will be a signal for the resumption of the monthly bullish trend, and it will send the NZD/USD pair higher. The first target of this potential bullish development is at the high at 0.7170, the second target is at the high at 0.7316, and the third is the monthly high at 0.7465.
On the other hand, if the NZD/USD pair break below the previous daily low at 0.6859, it will send the pair lower toward the weekly low at 0.6805. And if eventually, the NZD/USD pair breaks below the low at 0.6805, that will open the door for a bearish run toward the 0.386 FIB retracement ton the monthly chart at 0.6700.
Daily chart:
Weekly chart:
Monthly chart:
