NZDUSD is on its way to my 2021 target of 0.7500.
That may sound outlandish, but nobody expected the pair to be up 1,300 pips following the March selloff, either.
The false break below a multi-year trend line earlier this year and subsequent bullish breakout say it all.
As I’ve mentioned before, a false break to one side of a pattern often triggers an extended move in the opposite direction.
For NZDUSD, that means a move higher.
Notice how NZDUSD is holding well above the 2014 trend line.
On October 27th, I mentioned that the NZDUSD uptrend was likely to continue above 0.6800.
Notice how the 0.6800 area served as resistance in September.
The November 9th close confirmed the breakout on the daily time frame.
Now, it’s a matter of whether or not NZDUSD bulls can keep the price above that 0.6800 region.
Today’s weekly close will also be significant.
If we see NZDUSD close the week above 0.6800, it will add further confidence to the bullish outlook.
As I mentioned in last weekend’s forecast, the next key resistance levels come in at 0.6940 and 0.7160.
For now, though, all eyes are on 0.6800 support.
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