NZDUSD Weekly Technical Outlook
The Kiwi is looking very strong and the NZDUSD appears to have more room to head further northward. We may see bulls attempt the 0.70430/0.72000 resistance area in the weeks ahead.
On the weekly time frame, price action continues to bear northwards after bulls seized control in October 2018. Technically, there is little barrier to the bulls’ northward drive until the 0.70430 area provided they are able to navigate the current location, the 0.68650 area, which is a horizontal S/R zone.
On the daily time frame, price action breached a descending trendline (red) on November 1, 2018 and is now respecting an ascending trendlne (black) from recent lows. As long as the trendline holds, we may see bulls continue their control of the market. However, as price action is presently located at a horizontal S/R area, we may see some sideways or a brief retracement to a value area before a bullish continuation.
On the H4 time frame, price action is respecting an inner ascending trendline (magenta), a sign of an increase in bullish momentum. A pullback to retest the trendline and perhaps a bounce off it, or a retracement to the 0.68200 area, the immediate horizontal support zone, is likely to kick in a bullish continuation.
I may be wrong. Trade safe and prosper.