NZDUSD has been trading in a bearish price channel recently. While the pair managed to break above it in mid-December 2023 and even reach a textbook target of a breakout, it turned lower later on and returned into the range of the channel in mid-January 2024. However, recent moves on the pair were confined mostly to the 0.6050-0.6150 sideways range. An upside breakout from this range was delivered today.
Taking a look at NZDUSD chart at D1 interval, we can see that the pair managed to break above the 0.6150 resistance zone today. The move is driven by NZD strengthening, with Ne Zealand's currency being the best performing G10 currencies today, and by USD weakening, with US currency being among G10 top laggards today. A textbook range of the upside breakout from the range suggests a possibility of a move to as high as 0.6250 area. A point to note is that a resistance zone can be found in this area, marked with previous price reactions. Having said that, 0.6250 area looks as the likely next targets for buyers. Local highs on the pair were often reached when RSI indicator was near 70.0 mark. Given that RSI currently sits slightly below 60, it looks like the pair may extend current gains.
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Source: xStation5
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