On NZDUSD for a month we can see almost a vertical bullish movement. Demand is in power starting from failed attempt to break support at 0.6850, but this impulse may just come to an end. At the end of last week NZDUSD tested resistance at 0.7220, but it is hard to notice any attempt to break this level. Resistance in this area has 20 pips range 0.7220 – 0.7240, so we can still expect bulls to try breaking this region during next sessions.
If bears win – NZDUSD will drop to at least 0.7100. This scenario is supported by proximity of significant resistance and monthly growth movement, during which there was no major correction.
The alternative is to break the 0.7220 – 0.7240 region which would eventually lead NZDUSD to 0.7320. This scenario seems less likely, as it is also evidenced by current lack of attempts to break indicated level.
