NZD/USD Is Testing the Resistance at 0.6855

After several months of moving to the downside NZD/USD found some support at 0.6690 and bounced off from that level, but the question now is whether the pair will continue rising and forming its retracement as it has formed a clear shooting star candlestick at 0.6855 on the daily time-frame. Currently the pair is still testing that resistance and whether it will break out above it remains to be seen. If it bounces off from 0.6855 it will likely fall towards the last low at 0.6690 to test that support again, which could lead to the formation of a double bottom. On the other hand, if the pair breaks out above 0.6855 it will likely continue rising towards 0.6900.

NZD/USD May Start Falling

NZD/USD has been consolidating sideways below the resistance at 0.7060 for about a week now and the pair has formed several candlesticks on the daily time-frame that are likely signals that it may start moving to the downside again. Namely, there are two spinning top candlesticks as well as a pair of clear shooting star candlesticks. If the pair does bounce off from 0.7060 there will probably be a move to the downside towards 0.6950 and a breakout below that level could lead to a further move to the downside towards 0.6880. If the pair eventually breaks out above 0.7060 it will likely continue rising towards the (MA)89 indicator on the daily time-frame, which is at 0.7100.

NZD/USD Is Retracing

NZD/USD is currently forming a choppy retracement which began with the formation of a spinning top candlestick at the support at 0.6850. The pair is testing the resistance around 0.6960 – 0.6975 and if it manages to break out above that level it will likely continue moving to the upside towards the next resistance, which is probably around 0.7040. A breakout above that level could lead to a further move to the upside towards the (MA)89 indicator on the daily time-frame, which is currently at 0.7115. That said, so far the trend remains bearish and there will probably be a breakout below the last low at 0.6850 sooner or later. If or when that happens there will likely be a further move to the downside towards 0.6700.