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NZD/USD is continuing its recovery after dipping at 0.7454 on the 1st of June and has formed a Rising Wedge pattern on the 1H chart. The pattern has 83% quality and 54% magnitude in the 87-bar period.
The pattern started when pair bounced from 0.7617 and after testing resistance levels at 0.7784 and 0.7809 it has slowed down at 0.779 where the pair is currently trading. On aggregate indicators do not suggest emerging trends at 1H and 1D time horizons, but it points at a bull market outbreak on the 4H horizon. Long traders could focus on the daily resistance level at 0.7799. If this level is breached, next targets could be at 0.7820.
The Stochastic indicator on the 1H horizon points at a bearish market outbreak. Current market sentiment is 65/35 in favor for the bears as well. Short traders could focus on the support level at 0.7779. If the pair breaches this level, next possible target could be at a daily support level at 0.7765.
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