On January 28, the depicted support at 0.6400 acted as a prominent key level offering a valid buy entry. A bullish breakout above 0.6550 was executed a few weeks ago.
Bullish persistence above 0.6550 (depicted recent support) was needed to keep the price moving towards higher bullish targets.
The price zone of 0.6750-0.6840 constituted a significant resistance zone where signs of a bearish rejection were seen during the previous few weeks (triple-top reversal pattern).
On February 9, the NZD/USD pair failed to consolidate below the depicted support level of 0.6550.
Moreover, an obvious bullish recovery was expressed around the depicted temporary support level. Hence, the recent bullish swing towards 0.6750 and 0.6860 was initiated.
In March, an obvious bullish breakout above 0.6750 and 0.6860 was executed. Hence, these price levels now constitute recent support levels.
Bullish persistence above 0.6850 is mandatory to ensure further bullish advancement towards 0.7070 and 0.7170 where a prominent consolidation range was previously established in June 2015.
On the other hand, conservative traders can have a valid BUY entry around the current price level (0.6750). S/L should be located below 0.6700.
Note that a daily closure below 0.6750 invalidates the previous bullish breakout scenario allowing a quick bearish decline towards 0.6666 to occur.
The material has been provided by InstaForex Company – www.instaforex.com