I wrote about the bullish narrative for NZDUSD on July 1st.
But can buyers keep this trend reversal going?
Watch the video below to get my thoughts.
Be sure to also scroll down for more commentary and an annotated chart.
On July 1st, I wrote about a false break that reinforced the bullish narrative for the NZDUSD.
The false break I’m referring to occurred below a multi-year trend line.
I discussed this move at length and how a monthly close back inside of this wedge would confirm the false break.
June’s close did just that, which is why I became bullish on the New Zealand dollar on July 1st.
As I’ve said before, a false break to one side of a pattern often triggers an extended move in the opposite direction.
Since then, the NZDUSD has gained over 200 pips.
But this trend reversal is just getting underway, in my opinion.
If NZDUSD bulls can secure a daily close above the 0.6750 resistance area, there isn’t much to prevent a run at 0.7160 and perhaps even 0.7500.
The 0.7500 area marks the significant swing high that materialized in mid-2017.
That said, we could see a bit more consolidation before buyers can muster enough strength to take out the 0.6750 region.
Key near term support comes in at 0.6580.