The NZD/USD has reached and surpassed our 0.7155 target and is heading towards the 78.6% Fibonacci retracement and the upper channel boundary at 0.73.
Price has broken above important cloud resistance. However there are several indications that imply a pull back or a full scale reversal might be close.
NZD/USD H4 Chart
Price is trading inside a bullish channel and is forming an upward sloping wedge. Support is at 0.7188 and then at 0.7165. If these levels are broken then most probably the reversal has started. A break below the 0.70 level will confirm the bearish reversal.
NZD/USD Daily Chart
The pair is approaching the 78.6% Fibonacci resistance and the upper red trend line resistance around 0.73. It is not necessary to reach that level but I believe that we should expect a strong bearish reversal to be seen between 0.72 and 0.73. I would not be a buyer at current or higher levels.
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