Since January 26, bullish persistence above 0.6500 was mandatory to keep pushing the NZD/USD pair towards higher bullish targets.
However, a temporary bearish rejection has been expressed around 0.6550 for almost two weeks resulting in the depicted consolidation range.
On January 28, the depicted support level of 0.6400 acted as a prominent key level offering a valid buy entry. A bullish breakout above 0.6550 has been executed earlier last week.
Bullish persistence above 0.6550 (depicted recent support) was needed to keep the price moving towards higher bullish targets.
The area of 0.6700-0.6750 constituted a significant resistance zone. Recent signs of a bearish rejection were seen during the previous few weeks near the same zone.
On February 9, the NZD/USD pair failed to consolidate below the depicted support level of 0.6570.
Moreover, obvious bullish recovery was expressed at 0.6570 (temporary support level) Wednesday.
The zone of 0.6700-0.6750 will remain a significant resistance level to offer a valid sell entry.
Note that persistence below 0.6570 is mandatory to allow further bearish decline towards the zone of 0.6550 - 0.6500 where the price reaction should be watched for a possible buy entry.
The material has been provided by InstaForex Company - www.instaforex.com