FX.co ★ NZD/USD: upside reversal pattern in play

The NZD/USD pair changed little in the short term. It's trading at 0.6150 at the time of writing. It moves sideways, so we have to wait for the rate to escape from this pattern before going long or short.

The currency pair failed to extend its sell-off even if the US services and manufacturing data came in better than expected on Friday. It seems that the pair was oversold, so a new leg higher is in the cards. Tomorrow, the New Zealand banks will be closed in observance of Anzac Day. On the other hand, the US CB Consumer Confidence, New Home Sales, and Richmond Manufacturing Index could move the rate tomorrow. Worse than expected US figures should weaken the greenback.

NZD/USD Range!

Technically, the rate is trapped between 0.6155 and 0.6126 levels. The price action developed a Falling Wedge pattern which could announce a new swing higher, an upside reversal.

Now, it challenges the downtrend line and the 0.6155 static resistance. False breakouts may announce a new sell-off at least towards 0.6126 and down to 0.6122 levels.

NZD/USD Forecast!

A valid breakout above 0.6155 and beyond the weekly pivot point of 0.6160 activates the reversal pattern and brings new long opportunities.