The NZD broke-through the “cup & handle” pattern at 0.787 on the previous Monday. It almost reached the target we set at 0.80, but got the resistance a bit sooner at 0.798. The pair retested the break-up area on Thursday and the expected support appeared there, which created the long-tail doji candlestick that day.
Stochastic high levels are indicating that the pair is overbought so it might make a deeper correction before it continues rising. However, the cross of the 20 EMA above the 50 EMA is a strong bullish signal for the Kiwi, and if it break-through the 200 SMA at 0.803, it might continue to 0.82.
