NZD/USD Price Analysis: Bulls remain in control above 0.6500 mark, NFP eyed
|- NZD/USD gained some strong positive traction on Thursday and broke through 0.6500 hurdle.
- The move-up marked a near-term breakout through a bullish flag pattern on short-term charts.
- The pair now seems all set to aim back to test June swing highs, around the 0.6580-85 region.
The NZD/USD pair continued scaling higher through the mid-European session and climbed back closer to last week's swing high, around the 0.6530-35 region in the last hour.
A sustained move beyond the key 0.6500 psychological mark, which coincided with the top end of a three-week-old descending trend-channel, was seen as a key trigger for bullish traders. The mentioned channel constituted towards the formation of a bullish continuation flag pattern on short-term charts, which supports prospects for an extension of the recent positive move witnessed over the past three months or so.
Hence, some follow-through strength back towards June monthly tops, around the 0.6580-85 region, now looks a distinct possibility. The constructive outlook is further reinforced by bullish technical indicators on the daily chart. However, RSI on hourly charts is already flashing slightly overbought conditions and warrant some caution for bulls ahead of the closely-watched US monthly jobs report – NFP.
On the flip side, dips towards the mentioned channel resistance breakpoint, around the 0.6500 mark, might now be seen as a buying opportunity. This, in turn, should help limit the slide near the 0.6460-55 horizontal level. Any subsequent weakness might accelerate the slide back towards the 0.6385-80 support zone.
NZD/USD 4-hourly chart
Technical levels to watch
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