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.

Omkar Godbole FXStreet Contributor

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

1. R3 0.6818
2. R2 0.6805
3. R1 0.6784
PP 0.6771
1. S1 0.675
2. S2 0.6737
3. S3 0.6716

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD faces next resistance near 1.1930

EUR/USD has surrendered its earlier intraday advance on Thursday and is now hovering uncomfortably around the 1.1860 region amid modest gains in the US Dolla. Moving forward, markets are exoected to closely follow Friday’s release of US CPI data.

GBP/USD inching closer to 1.36

The Pound Sterling edged higher to 1.3640 on Thursday, recovering from an earlier pullback after stronger-than-expected US jobs data initially weighed on the pair. The Bank of England held rates at 3.75% at its February 4 meeting in a narrow 5-4 vote split, with four members preferring a 25 basis point cut to 3.50%.

Gold falls to near $4,900 as selling pressure intensifies

Gold price faces some selling pressure around $4,910 during the early Asian session on Friday. The yellow metal tumbles over 3.50% on the day, with algorithmic traders appearing to amplify the precious metal’s sudden drop. Traders will closely monitor the release of the US Consumer Price Index inflation report for January, which will be released later on Friday.

Ethereum investors face huge unrealized losses following price slump

US spot Ethereum exchange-traded funds flipped negative again on Wednesday after recording net outflows of $129.1 million, reversing mild inflows seen at the beginning of the week, per SoSoValue data. Fidelity's FETH was responsible for more than half of withdrawals, posting outflows of $67 million.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Aster Price Forecast: Demand sparks on Binance Wallet partnership for on-chain perpetuals

Aster is up roughly 9% so far on Thursday, hinting at the breakout of a crucial resistance level. Aster partners up with Binance wallet for the second season of the on-chain perpetuals challenge.