NZD/USD Approaching Critical Resistance

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.

Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.

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