If the resistance at 0.6790 is broken, the short-term forecast -beginning of downtrend- will be invalid….
Price action traders may also wish to note that we see a pin bar candlestick pattern on nzdusd.
Relative to other instruments in the forex asset class, nzdusd ranked 20th the day prior in terms of percentage price change.
The clearest trend exists on the 30 day timeframe, which shows price moving up over that time.
Looking at my chart you can watch the pair building this massive triangle-formation with the upper and lower boundary marked in blue, besides that the pair is forming a wave-count in which it completes the wave d now and sets up to form the final wave e which can finish the whole formation, what is also important here is that the pair bounced from the 60-ema in red and confirmed it as support, therefore these levels ending in a coherent support cluster marked in green in my chart….
As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern.
Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving up.
This is a reversal of the price action on the previous hour, in which price moved down.
This imputes a buy/sell ratio of 1.07, which is neutral.
The clearest trend exists on the 90 day timeframe, which shows price moving up over that time.