The daily chart shows a bullish Flag pattern that was initiated around the level of 0.6230 on September 23.
A bullish engulfing candlestick was expressed at 0.6520 yesterday. Today, a bullish breakout above 0.6600 is taking place.
Temporary bearish rejection should be expected around 0.6690, which is a prominent daily resistance level on the daily chart. Actually, initial bearish rejection has been expressed earlier today.
On the other hand, an estimated projection target for this flag pattern is located at 0.6950 as long as the NZD/USD pair keeps trading above 0.6600.
Recently, significant bullish rejection was expressed around 0.6430 followed by a consolidation range that extended between 0.6500 and 0.6600.
Earlier this week, an obvious bullish breakout above 0.6600 was executed via a full-body bullish H4 candlestick.
As anticipated, resistance levels of the USD/CAD pair is found around 0.6690 and 0.6750 providing evident bearish rejection.
For conservative traders, a valid buy entry was suggested around 0.6600 (corresponds to the backside of the broken trend and the upper limit of the broken consolidation range). S/L should be set as a closure below 0.6550 on the H4 chart.
On the other hand, the level of 0.6640 remains the key level to be defended by NZD/USD bulls with the aim to keep pushing higher. Otherwise, a deeper bearish pullback towards 0.6600 should not be excluded to happen again.
Next bullish targets come to meet the NZD/USD pair at 0.6666, 0.6700 and 0.6750.
The material has been provided by InstaForex Company - www.instaforex.com