Technical analysis

The NZDUSD pair has broken above the psychological 0.7000 level and the mid-line of the upper daily Bollinger Band, which is now located around the 0.6985 support area.

Bulls could be preparing to take the NZDUSD pair towards the top of a broadening wedge or megaphone style pattern, around the 0.7120 resistance level.

What the possible outcomes are

In our most likely scenario, the NZDUSD pair will rally towards the top of the broadening wedge pattern, around the 0.7120 level before staging a meaningful price correction.

Alternatively, the NZDUSD could test the mid-line of the Bollinger Band before rallying towards the top of the broadening wedge pattern.

Key levels

Support 0.6985 0.6920

Resistance 0.7045 0.7130