The NZD/USD has recently recovered from a 3-month low, trading as low as the 0.7340 level but failed several times to breach below this price. However, over the past weeks, the pair began to correct these losses and is currently trading near the 0.7525 level. In addition, bullish signals on the 8-hour chart suggest that the pair’s uptrend is likely to proceed.
• The chart below is the NZD/USD 8-hour chart.
• It can be seen that a bullish channel has formed after the pair recovered from a 3-month low.
• The pair is currently floating in the midst of the channel, suggesting that the bullish momentum has more steam in it.
• In addition, a bullish cross took place on the Slow Stochastic, also indicating that the bullish move has more room to go.
• Another bullish signal comes from the MACD which continues to point upwards and is currently floating near the 0.00 line. Potentially, the MACD can reach as high as the 0.10 level, and the pair is likely to follow it.
• The next resistance levels are located at the 0.7575, 0.7630 and 0.7665 levels.
• The next support levels are at: 0.7460, 0.7405 and 0.7340.
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Yan Petters is a top analyst of market trends who specializes in the forex market. Yan has a reputation for composing highly accurate analytical reports, both technical and fundamental. Yan Petters' ground-breaking perspectives on currency trends are highly valued by his colleagues and clients and has been a featured author on a number of influential trading sites. Yan Petters is an author for the ForexYard blog
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