NZD/USD technical analysis: Rises above 0.63 confirming descending channel breakout
- NZD/USD is looking north with the hourly chart reporting a falling channel breakout.
- The pair could challenge recent highs above 0.6330 in the next 24 hours or so.
NZD/USD pair rose above 0.63 a few minutes before press time, confirming a descending channel breakout on the hourly chart.
The falling channel breakout indicates the recovery rally from Oct. 1's low of 0.6204 has resumed and the pair could revisit and possibly break above the recent high of 0.6337.
Supporting the bullish case is the above-50 reading on the hourly chart relative strength index.
The daily chart RSI has also bounced up from 50 levels, reinforcing the bullish view.
The bullish view would be invalidated if the hourly chart ascending trendline is breached, although as of now, that looks unlikely.
As of writing, the pair is trading at 0.6316, having hit a session high of 0.6318 soon before press time. The pair picked up a bid at 0.6285 after New Zealand reported biggest fiscal surplus in nearly a decade.
Daily chart
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Trend: Bullish
Technical levels
Author
Omkar Godbole
FXStreet Contributor
Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.
