In December 2016, the NZD/USD pair had been trapped within the depicted price range (0.6860-0.6990) until a bullish breakout occurred.
A bullish breakout above 0.6960-0.7000 allowed the pair to head toward the price level of 0.7100 (the key level) which failed to provide enough bearish pressure on the pair.
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 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 has been achieved above the depicted key level (0.6960). However, the pair failed to express enough bullish momentum above 0.7050.
Importantly, the depicted bullish 1-2-3 pattern remains valid as long as bullish fixation above 0.6860 is maintained on a daily basis. Expected projection target for the pattern is located around 0.7250.
On the other hand, the NZD/USD pair will be trapped again within the depicted consolidation range (0.6860-0.6960) until breakout occurs in either direction.
The material has been provided by InstaForex Company - www.instaforex.com
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