NZDUSD Flat Top Ascending Triangle Breakout

Nenad Kerkez

The NZDUSD bounced following better than expected NZD employment data – jobs report. Investors started to disregard latest RBNZ gov. Wheeler’s comments re further rate cuts as he implied that the outlook for the economy is looking positive, expanding his annual forecasts towards 3 % annually

Technically the pair is looking strong as it broke through running ascending flat top triangle. Running triangle means a triangle with no vortex at the top formed but it is still treated as triangle pattern. We should pay attention to a possible Breakout Retest pattern within 1.6545-55 zone as we also have a strong confluence there (H4, double top, 38.2). The price has already broken through strong H5 resistance so we need to watch for divergence in order for the price to retrace towards BR zone.

Positional trades might come slightly below the BR zone within 1.6510-20 (61.8, H3, EMA89). The target is 1.6655.

NZDUSD Hourly Chart

NZDUSD Hourly Chart

Source: admiralmarkets.com

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