NZD/USD remains bullish even though USDX has turned to the upside in the short term. The pair has decreased a little in the last hours, but the drop could be temporary one before it jumps higher.
The pair has managed to take out some major and critical upside obstacles, so further growth is natural and expected. Some poor inflation data reported by the US later today could boost the pair.
NZD/USD Strongly BullishNZD/USD has stabilized above the 0.6790 broken resistance and is now located above the first warning line (wl1) and beyond the R1 (0.6851) level. I've mentioned in the previous analysis that the pair should extend its upward swing after a valid breakout above these obstacles.
The price has found temporary resistance at the 0.6914 level and now has declined a little trying to accumulate more bullish energy before resuming the bullish movement. Technically, the bullish outlook remains intact as long as NZD/USD stays above the R1 and above the first warning line (wl1).
NZD/USD Trading TipsA consolidation above R1 (0.6851) followed by a new higher high and a bullish closure above 0.6914 suggests buying with a target somewhere at the second warning line (wl1) near the 0.7000 psychological level.
The aggressive breakout above R1 signals further growth, that's why we cannot talk about a corrective phase and a selling opportunity right now.