The daily chart shows a bullish Flag pattern that was initiated on September 23 around the price level of 0.6230.
A bullish engulfing candlestick was expressed off 0.6520 yesterday.Today, a bullish breakout above 0.6600 is taking place.
Temporary bearish rejection should be expected around the 0.6690 mark, which is a prominent daily resistance level on the daily chart.
On the other hand, an estimated projection target for this flag pattern is located at 0.6950 as long as the NZD/USD pair keeps trading above 0.6600.
Recently, significant bullish rejection was expressed around 0.6430 followed by a consolidation range that extended between 0.6500 and 0.6600.
Earlier today, an obvious bullish breakout above 0.6600 was executed via a full-body bullish H4 candlestick.
Next resistance levels stand around 0.6690 and 0.6750 where temporary bearish rejection should be expected.
For conservative traders, a valid BUY entry can be offered around 0.6600 (corresponds to the backside of the broken trend and the upper limit of the broken consolidation range). S/L should be set as H4 closure below 0.6550.
On the other hand, the price level of 0.6640 remains a key level to be watched for the short-term price reaction.
The material has been provided by InstaForex Company - www.instaforex.com