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Similarly to the course of events in NZD/USD, this currency pair started fluctuating within two bullish trend-lines after successfully overcoming the 200-hour SMA. However, in this case they do not seem to be parallel, the lower line is slightly more positively sloped than the upper one, meaning that the pattern formed is not a channel up, but rather a rising wedge, which warns of an increasing chance of a sell-off the closer the price is getting to the apex of the pattern. For now NZD/USD should be contained by the resistance at 1.1687 and the support at 1.1575, while a breach of the latter is unlikely to extend far beyond the 200-hour SMA.
© Dukascopy Bank SA