NZD/USD Breakout Brings Reversal!

NZD/USD continues to stay near the downtrend line, at 0.7030 level. An upside breakout could signal an upside reversal.

The pair may continue to increase if the US Dollar Index resumes its downside movement after its temporary rebound. The United States inflation data could be decisive tomorrow. The CPI is expected to increase by 0.5%, while the Core CPI may increase by 0.2%.

In line with expectations data or better could help the USD to recover and dominate the currency market again. On the other hand, some poor figures could ruin the dollar and could send NZD/USD higher.

NZD/USD H4 Chart Analysis!

NZD/USD is pressuring the downtrend line after failing to come back towards the former lower lows. It’s traded at 0.7040 at the time of writing, a valid breakout above the downtrend line signals reversal.

The pair have confirmed the ascending pitchfork by retesting the lower median line (LML). So, a valid breakout above the downtrend line and a new higher high is seen as buying opportunity.

The support is seen at the weekly S1 (0.6995), while the resistance stands at the weekly R1 (0.7068).

Conclusion! 

An upside breakout above the downtrend line and through the R1 could represent a buying signal.

 

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