- The NZD/USD pair is showing signs of force following a breakout of the highest price of 0.7205 (a major support).
- Currently, the price was in a bullish channel since yesterday. This is confirmed by the RSI indicator signaling that we are still in a bullish trending market.
- So, the NZD/USD pair continues to move upwards from the level of 0.7205. As long as the trend is above the price of 0.7205, the market is still in an uptrend.
- In addition, the trend is still strong above the moving average (MA100). The NZD/USD pair didn’t make any significant movements this week. The market is indicating a bullish opportunity above the mentioned support levels. The bullish outlook remains valid as long as the 100 EMA heads for the upside.
- Therefore, strong support will be found around the spot of 0.7159-0.7205 providing a clear signal to buy with a target seen at 0.7250. If the trend breaks the first resistance at 0.7250, the pair will move upwards continuing the bullish trend development to the level of 0.7305 in order to test the daily resistance 2.
- It should be noted that the major resistance is seen at 0.7344 today. Otherwise, it would also be wise to consider where to place a stop loss; this should be set below the second support of 0.7122.
The material has been provided by InstaForex Company – www.instaforex.com