NZD/USD reached a fresh new high of 0.7464 today confirming once again that the bulls are in full control. It has managed to take out important upside obstacles signaling further growth ahead.
Kiwi resumed its appreciation after RBNZ decided to keep the current monetary policy. The Official Cash Rate was left unchanged at 0.25% as expected. On the other hand, the greenback was punished by the FED Chair Powell testifies, so it won't be a surprise if the USD continues to depreciate.
NZD/USD Upside Continuation!
NZD/USD ignored the first warning line (WL1) and the R2 (0.7412) and now is traded at 0.7449. The breakout above the previous upside obstacles signals that the pair will continue higher towards 0.75 psychological level.
The pair was expected to resume its upwards movement after breaking above the descending pitchfork's upper median line (UML). Now, jumping above the first warning line (WL1) suggests a further increase towards the second warning line (WL2). So, the outlook remains bullish as long as the price stays above the R2 and WL1.
Forecast & Tips!
The breakout through the WL1 and R2 (0.7412) represented a long signal. The next upside target is seen at the R3 (0.7509) level.