The daily chart shows a bullish Flag pattern that was initiated around the level of 0.6230 on September 23.
Three weeks ago, a bullish engulfing candlestick was expressed around 0.6520.
Two weeks ago, a bullish breakout above 0.6600 (the upper limit of the flag pattern) took place.
Temporary bearish rejection should be expected around 0.6700-0.6750 (prominent resistance zone) on the daily chart. Actually, previous bearish rejection had been expressed earlier two weeks ago on Friday.
On the other hand, an estimated projection target for this flag pattern is located at 0.6950 only if the NZD/USD pair manages to keep trading above 0.6750 and 0.6840.
Last Tuesday, an obvious bullish breakout above 0.6600 was executed via a full-body bullish H4 candlestick.
As anticipated, the NZD/CAD pair found resistance 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 depicted uptrend and the upper limit of the broken consolidation range). S/L should be elevated to 0.6680 to secure some of the achieved profits.
The level of 0.6750 remains a significant resistance level to offer bearish rejection similar to what happened back on December 4.
On the other hand, bullish fixation above 0.6750 and 0.6780 (previous daily high) exposes the next resistance level that comes to meet the NZD/USD pair around 0.6850.
The material has been provided by InstaForex Company - www.instaforex.com