NZD/USD potential reversal up after triple bottom

NZD/USD has been falling all the way from 0.8836 until the most recent low at 0.7129. It lost 1700 pips in a year. This is a very interesting moment on NZD/USD since it formed a triple bottom around 0.7200. Yesterday, the price has tested a 12-year low.

In addition to the triple bottom, the pair tested the downside target of the channel breakout. You can see more detailed analysis on that particular channel in my previous forecast for NZD/USD. This makes significant support and could result in a beginning of another corrective move up. The additional confirmation could be bullish divergence on the Demarker Indicator as well as a potential bounce of the uptrend trendline.

Consider buying NZD/USD at the current level with targets at the area of 0.7782-0.7833 that is also a 38.2% Fibonacci retracement level applied to a high of 0.8836 and the most recent low. A daily close below 0.7129 will invalidate this forecast.

Support: 0.7129

Resistance: 0.7534, 0.7782

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The material has been provided by InstaForex Company – www.instaforex.com

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