NZD/USD Technical Analysis: This falling trendline is capping gains

Omkar Godbole FXStreet Contributor

The NZD/USD pair's first attempt to scale the falling trendline connecting the Dec. 4 and Dec. 18 highs failed in the overnight trade.

4-hour chart

As seen above, the falling trendline hurdle at 0.68 proved a tough nut to crack in the late US/early Asian session.

The pullback to 0.6771 seen in the last few hours, however, has taken the shape of a bull flag - a pause, which often accelerates the preceding bull move.

1-hour chart

The bull flag breakout seen in the above chart indicates that the rally from the Jan. 8 low of 0.6707 has resumed and the pair could go rise as high as 0.6890 (target as per the measured move method).

The pair, therefore, could soon rise well above the falling trendline hurdle, currently at 0.6794.

Trend: Bullish

NZD/USD

Overview:
    Today Last Price: 0.6782
    Today Daily change: -17 pips
    Today Daily change %: -0.250%
    Today Daily Open: 0.6799
Trends:
    Previous Daily SMA20: 0.6749
    Previous Daily SMA50: 0.6784
    Previous Daily SMA100: 0.668
    Previous Daily SMA200: 0.6801
Levels:
    Previous Daily High: 0.6812
    Previous Daily Low: 0.6713
    Previous Weekly High: 0.6843
    Previous Weekly Low: 0.6516
    Previous Monthly High: 0.697
    Previous Monthly Low: 0.6686
    Previous Daily Fibonacci 38.2%: 0.6774
    Previous Daily Fibonacci 61.8%: 0.6751
    Previous Daily Pivot Point S1: 0.6737
    Previous Daily Pivot Point S2: 0.6676
    Previous Daily Pivot Point S3: 0.6638
    Previous Daily Pivot Point R1: 0.6836
    Previous Daily Pivot Point R2: 0.6873
    Previous Daily Pivot Point R3: 0.6935

Author

Omkar Godbole

FXStreet Contributor

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

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