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NZDUSD Pullback Likely to Be Temporary
Back on October 27th, we looked at a bullish scenario for NZDUSD. The pair was still consolidating between 0.6500 support and 0.6790 resistance. However, a combination of factors pointed to a higher New Zealand dollar. First was the breakout on the monthly time frame. NZDUSD broke out of this pattern in July. And although it moved sideways for the next few months, the breakout above was fully intact. Second, notice the false break in the chart above. As I often say, a false break to one side of a pattern usually triggers an extended move in the opposite direction. Because the false break was to the downside, it meant ... (full story)
