© Dukascopy Bank
NZD/USD bounced off the support level at 0.8120, forming a rising wedge pattern on the 1H chart. The formation has 61% quality along with 83% magnitude in a 47-bar period.
The price was capped at 0.8220, then at 0.8226, and lowered to the support level around 0.8198. The Stochastic indicator lowered to 40.78% after it had touched the 80% area. The initial target for bears is around 0.8190, near the present support level. If the price breaches support level, the second target for short traders could be around 0.8167, where the previous local low stands.
The pair's bias is neutral, which leads to the short-term volatility decrease. If the price bounces off the support level around 0.8173/98, the present target for bulls might be near pattern's resistance level at 0.8230.