The daily chart shows a bullish Flag pattern that was initiated around the level of 0.6230 on September 23.
On November 30, a bullish engulfing candlestick was expressed around 0.6520 where the depicted uptrend came to meet the NZD/USD pair.
Shortly after, a bullish breakout above 0.6600 (the upper limit of the flag pattern) took place. This enhanced the bullish side of the market towards 0.6800 initially.
Temporary bearish rejection was expected around 0.6750 and 0.6840 (daily resistance levels) on the daily chart. Actually, an earlier bearish rejection had been expressed two weeks ago on Friday.
On the other hand, an estimated projection target for this flag pattern remains 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 made via a full-body bullish candlestick in the H4 chart.
Shortly after, the NZD/CAD pair faced resistance between 0.6700 and 0.6750 providing evident bearish rejection.
For NZD/USD 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).
The level of 0.6840 remains the significant resistance level to offer a valid Intraday sell entry.
On the other hand, bearish fixation below 0.6750 opened the way towards 1.6700 where the depicted uptrend line comes to meet the NZD/USD pair.
A valid buy entry can be considered around the level of 1.6700 (the depicted uptrend line as well as a recent support level) if enough bullish rejection is expressed on the H4 chart.
S/L should be located below 1.6650. T/P levels are projected towards 1.6840 and 1.6900.
The material has been provided by InstaForex Company - www.instaforex.com