Technical outlook and chart setups:
The NZD/USD pair dropped to 0.6300 today as expected and bounced back sharply, after indicating a bullish reversal. Please note that the pair had formed a bullish morning star candlestick pattern on the H4 chart indicating reversal. The pair is looking for an opportunity to break out of the diamond consolidation resistance through 0.6400. It is hence recommended to remain long from yesterday with risk at 0.6200. Immediate support is seen at 0.6300 (interim) followed by 0.6200/25 and lower, while resistance is seen at 0.6400/50 (interim) followed by 0.6500 and higher.
Remain long with stop set at 0.6200, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com