I’ve been discussing the potential for a stronger NZDUSD since October.
We’ve had several rallies since that time, but the pair was never able to breach the 0.6430/40 resistance area on a daily closing basis.
That’s the region buyers needed to clear in order to send the NZDUSD higher.
If you watched my November 19 NZDUSD video, you know that I was waiting for a bullish breakout.
I also wrote about the pair’s bullish potential last Wednesday.
So far today, the New Zealand dollar is well above that 0.6430/40 resistance area that has capped the pair since September.
A daily close above it today could take NZDUSD to 0.6580.
That’s a key resistance area I’ve pointed out several times recently.
A close above 0.6430/40 would also suggest that any retest of the area would likely attract an influx of buying pressure.
Don’t forget too that the inverse head and shoulders I mentioned on November 15 is technically still intact.
It has changed since that post, but the pattern is still there.
We’ll have to wait and see whether that formation has any bearing on where the NZDUSD travels in the coming days and weeks.
But if the measured objective is any indication, it could produce a move as high as 0.6660.
Just keep in mind that we still need a daily close above 0.6430/40.
Because I use New York close charts, we won’t have a confirmed breakout until 5 pm EST today.
That’s when the first full 24-hour session of the new week ends.
As of right now, though, NZDUSD bulls look to be in complete control.
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