Descending channel is broken
NZD/USD had been moving within a descending channel. Currently the price line was able to break above the channel and also had a retest of the broken channel. Right now the price is on a strong support level and everything is ready for a pump.
Chart Notes:
• Chart time-zone is UTC (+03:00)
• Candles’ time-frame is 4h.
0.7077 is the closest support level to the price. The area equals to the top of the broken channel as well as level 0.618 of Fibonacci retracement; it has also been able to pump the price several times in the past. RSI indicator is showing divergence comparing to the price line. In case the support level can hold the price and pump it once more, buyers can enter. The first target for the ascending wave would be 0.7137 and the next one could be 0.72. On the other hand, if the support level won’t be able to hold the price this time, a strong ascending wave would be accepted. In this case sellers can target 0.6945 as their first TP and 0.688 as the next one.
• DISCLAIMER: Please note that the above analysis is not an investment suggestion by “Capitalcore Ltd”. This post has been published only for educational purposes.