The NZDUSD remains capped below the 0.6430/40 resistance area.
I’ve pointed out this region several times as one that buyers need to clear on a daily closing basis to send the pair higher.
But one thing catches my eye about the recent price action.
Notice how since reaching 0.6430/40 on November 20, the NZDUSD has yet to back away from the area.
This is either a sign of an imminent break higher or just a lack of volume due to this week’s US Thanksgiving holiday.
We should have an answer soon enough.
For now, though, I still think it’s going to take a daily close above 0.6440 to expose higher levels.
One such level is 0.6490.
Notice how it served as support in May and June. It then acted as a pivot between the 5th and 9th of August.
A close above that would target 0.6580.
Alternatively, bearish price action, such as a pin bar from 0.6430/40, would keep sellers in control a while longer.
I would caution anyone trying to sell the NZDUSD at the moment, though.
While the pair could still go either way, the constant pressure on 0.6430/40 resistance does suggest strength.
It doesn’t mean NZDUSD will move higher, but it is something to keep an eye on for now.
Regardless of what the markets do, though, I won’t be trading on Thursday as I’ll be spending time with my family.
So with that, an early Happy Thanksgiving to those in the US.