NZD/USD technical analysis: Bull flag seen on the hourly chart
|- NZD/USD's hourly chart shows a bull flag.
- A breakout could yield a rally to 0.6870.
NZD/USD seems to have created a bull flag, a bullish continuation pattern, on the hourly chart.
A break above the upper edge of the flag, currently at 0.6776, would confirm a flag breakout or a continuation of the rally from the July 16 low of 0.6694 and would create room for a rally to 0.6873 (target as per the measured move method).
The hourly chart relative strength index has already breached the descending trendline. So, a flag breakout could happen in the next couple of hours.
Also, the outlook as per the daily chart will remain bullish as long as the higher lows and higher highs pattern is intact. A daily close below 0.6727 (June 28 high) is needed to invalidate the bullish setup.
As of writing, the pair is trading at 0.6766.
Hourly chart
Trend: Bullish
Pivot points
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.