The daily chart shows a bullish Flag pattern that was initiated around the level of 0.6230 on September 23.
A bullish engulfing candlestick was expressed at 0.6520 yesterday.Today, a bullish breakout above 0.6600 is taking place.
Temporary bearish rejection should be expected around 0.6690, which is a prominent daily resistance level on the daily chart. Actually, initial bearish rejection has been expressed earlier today.
On the other hand, an estimated projection target for this flag pattern is located at 0.6950 as long as the NZD/USD pair keeps trading above 0.6600.
Recently, significant bullish rejection was expressed around 0.6430 followed by a consolidation range that extended between 0.6500 and 0.6600.
Earlier this week, an obvious bullish breakout above 0.6600 was executed via a full-body bullish H4 candlestick.
Next resistance levels to meet the NZD/USD pair are located around 0.6690 and 0.6750 where temporary bearish rejection should be expected.
For conservative traders, a valid buy entry can be offered around 0.6600 (corresponds to the backside of the broken trend and the upper limit of the broken consolidation range). S/L should be set as closure below 0.6550 on the H4 chart.
On the other hand, the price level of 0.6640 remains the key level to be defended by NZD/USD bulls to keep pushing higher. Otherwise, a deeper bearish pullback towards 0.6600 should be expected.
The material has been provided by InstaForex Company – www.instaforex.com