The daily chart shows a bullish Flag pattern that was initiated around the level of 0.6230 on September 23.
On November 30, a bullish engulfing candlestick was expressed around 0.6520 where the depicted uptrend came to meet the NZD/USD pair.
Shortly after, a bullish breakout above 0.6600 (the upper limit of the flag pattern) took place. This enhanced the bullish side of the market towards 0.6800.
A temporary bearish rejection should be expected around 0.6840 (daily resistance level).
Actually, an earlier bearish rejection was expressed around 0.6840 few weeks ago. That’s why, a similar bearish reaction should be expected this week.
On the other hand, an estimated projection target for this flag pattern remains at 0.6950 only if the NZD/USD pair manages to keep trading above 0.6840.
Two weeks ago, an obvious bullish breakout above 0.6600 was executed via a full-body bullish candlestick on the H4 chart.
Shortly after, the NZD/CAD pair faced resistance between 0.6700 and 0.6750 providing evident bearish rejection.
For the NZD/USD conservative traders, a valid buy entry was suggested around 0.6600 (corresponding to the depicted uptrend and the upper limit of the broken consolidation range).
Shortly after, another valid buy entry was suggested around the level of 0.6700 (the depicted uptrend line as well as a recent support level). It is already running in profits now.
Last week, lack of bullish pressure above 0.6800 was manifested. That is why a bearish pullback took place towards 0.6770 where an ongoing bullish swing was initiated.
Bullish fixation above 0.6845 enhances the bullish side of the market.
Long-term bullish targets are located at 0.6950 as long as the NZD/USD pair keeps pushing above 0.6845.
On the other hand, another bearish fixation below 0.6840 brings the pair back to 0.6750 where a valid buy entry can be offered (where the depicted uptrend line comes to meet the NZD/USD pair).
S/L is to be located below 0.6700. Initial T/P level remains located at 0.6840.
The material has been provided by InstaForex Company – www.instaforex.com