The NZD/USD pair developed a triangle pattern in the short term signaling potential further growth. The pair was into a corrective phase after registering an amazing rally. A temporary decline was somehow expected.
Technically, the retreat seems over, the NZD/USD pair found strong support. The price action printed a triangle pattern. If this formation is activated, we may have fresh trading opportunities.
Unfortunately, the USD has taken a hit from the United States Advance GDP. The economic indicator reported only a 2.0% growth versus 2.6% growth expected and after 6.7% in the former reading period.
NZD/USD Technical Analysis!
NZD/USD continues to pressure the triangle’s resistance, the downtrend line. A valid breakout through it and a new higher high could bring fresh opportunities. The downside seems limited after failing to take out the support represented by the weekly pivot point (0.7139).
Also, failing to come back down towards the ascending pitchfork’s median line (ML) may signal that the NZD/USD could come back to reach the upper median line (UML). A larger upside movement will be reported by a valid breakout through the upper median line.
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