As long as the NZD/USD pair continued trading above 0.6860, further bullish advance was expected towards the upper limit of the depicted channel around 0.7400.
Recently, the price zone between 0.7470-0.7500 has corresponded to the upper limit of the depicted movement channel where bearish rejection and a valid SELL entry were expressed few weeks ago.
On October 20, the mark of 0.7245 was a prominent key-level where significant bearish rejection was expressed.
Shortly after, the price level around 0.7100 (the lower limit of the depicted channel) stood as a solid support level where bullish recovery was expressed on October 28.
The depicted chart illustrates a double-bottom pattern. Full projection target is located around 0.7450.
Bullish persistence above 0.7250 (Neckline) is mandatory to allow further bullish advance towards 0.7350 and 0.7450.
Note that the depicted price zone (0.7250-0.7350) corresponds to a previous consolidation range.
Significant signs of bearish reversal were expressed around the upper limit of the price range (0.7350).
Bearish breakdown of 0.7250 will be needed to enhance the bearish side of the market. Initial bearish target is located at the price level of 0.7100 (recent bottom established on October 28).
Otherwise, the NZD/USD pair will remain trapped within the depicted consolidation range if the current daily candlestick fails to close below 0.7250.
The material has been provided by InstaForex Company - www.instaforex.com