This week NZD/USD fulfilled its suggestions from the week prior and posted an exceptionally bullish week. After being constrained within an ascending daily channel structure, for some weeks, price broke to the upside from this channel which catapulted it up to 0.6910. These are prices that have not been seen since March 2019. Although some bearish price action was seen later in the week price posted a convincing higher high on the daily timeframe.
With all trend lines heading in a bullish direction, it is hard to see a bearish scenario currently for NZD/USD. As price touched the upper boundary of the ascending daily channel structure late last week, this week we could expect some bearish return of price to the strong support level of 0.6800. This may be enough of a pullback in order to convince more bulls to join the race, or the pullback may extend all the way back to the lower boundary of the current channel structure. Until the channel structure is invalided to the downside, we see NZD/USD going nowhere but skywards.
With all trend lines heading in a bullish direction, it is hard to see a bearish scenario currently for NZD/USD. As price touched the upper boundary of the ascending daily channel structure late last week, this week we could expect some bearish return of price to the strong support level of 0.6800. This may be enough of a pullback in order to convince more bulls to join the race, or the pullback may extend all the way back to the lower boundary of the current channel structure. Until the channel structure is invalided to the downside, we see NZD/USD going nowhere but skywards.