NZD/USD 1H Chart: Channel Up

Source: Dukascopy Bank SA
© Dukascopy Bank SA
A rebound from a solid support level at 0.6960 allowed NZD/USD to form a bullish channel. The pattern implies a positive outlook, and the rest of the studies support being long the Kiwi. A majority of the hourly and four-hour technical indicators is giving ‘buy' signals. Moreover, the pair is heavily oversold (72% of positions are short), meaning there is plenty of space for new buyers to enter the market. The only caveat is that the recovery from 0.6960 appears to be an upward correction following the Jul 13 - 21 sell-off. This increases the importance of the pair's behaviour near the Fibonacci retracement levels. The next one is at 0.7140, namely the 50% retracement level.
© Dukascopy Bank SA
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