New Zealand Dollar lost 770 pips since last July, losing more than 10% in five months only, but NZD/USD could corrept the trend soon, thanks to a pattern that may anticipate an intense phase of purchases.
The technical analysis of NZD/USD shows a bearish trend for sure, but the price is oscillating between historical levels of 0.6778 and 0.7978 since a long time and now it seems close to complete an inversion pattern when no news can have impact on the pair, before the increase of American interest rate by the FED at least.
NZD/USD, technical analysis
The price of NZD/USD is bouncing on the 0.6863 technical support, realizing three false break that canceled the continuation pattern hypothesis and tracked a triple-bottom pattern, an inversion figure which could generate a new rise of the pair.
The triple bottom is large and its neckline is tilted to the right, the breakout of this dynamic resistance could be the start of a fast bounce for the New Zealand Dollar.
If the price will break the neckline successfully, the NZD/USD exchange rate could rise 0.7001 level at first, with the probable target of 0.7166 considering the vertical extension of the pattern.