In December 2016, the NZD/USD pair was trapped within the depicted price range (0.6860-0.6990) until a bullish breakout occurred.
A bullish breakout above 0.6960-0.7000 pushed the pair toward the price level of 0.7100 (the key level) which failed to provide sufficient bearish pressure.
Bullish persistence above 0.7100 allowed a further advance toward 0.7250-0.7350 (sell zone) where the bearish price action was expected.
Bearish persistence below 0.7250 allowed a further decline toward 0.7100 and then 0.6960 which failed to provide enough support for the pair.
That is why a further fall was expected toward 0.6860 (the lower limit of the depicted buy zone) where a bullish position was suggested in previous articles.
Recently, a bullish breakout was achieved above the depicted key level (0.6960). However, the pair failed to keep enough bullish momentum above 0.7050.
That's why, the NZD/USD pair became trapped within the depicted consolidation range (0.6860-0.6960) once again.
Note the depicted bullish 1-2-3 pattern remains valid as long as bullish fixation above 0.6900-0.6850 is maintained on a daily basis. Any daily candlestick closure below 0.6850 invalidates the bullish scenario for the current time clearing the way initially towards 0.6770.
On the other hand, a bullish breakout above 0.6960 is needed to allow a further bullish movement. Expected projection target for the pattern is located around 0.7250.
The material has been provided by InstaForex Company - www.instaforex.com