On January 28, the depicted support at 0.6400 acted as a prominent key level offering a valid buy entry.
The 0.6550 level was broken above a few weeks ago.
Bullish persistence above 0.6550 (depicted recent support) was necessary to keep the price moving towards higher bullish targets.
The price zone of 0.6750-0.6840 constituted a significant resistance zone where signs of a bearish rejection were seen during the previous few weeks (triple-top reversal pattern).
On February 9, the NZD/USD pair failed to consolidate below the depicted support level at 0.6550.
Moreover, an obvious bullish recovery was expressed around the depicted temporary support level. Hence, the recent bullish swing towards 0.6750 and 0.6860 was initiated.
In March, an obvious bullish breakout above 0.6750 and 0.6860 was executed.
Hence, these price levels now constitute recent support levels to be watched for valid buy entries.
Last week, bullish persistence above 0.6850 (recent support) was mandatory to maintain enough bullish momentum in the market.
However, a daily closure below the 0.6850 level (Friday) enhanced a quick bearish movement towards 0.6750 where a valid BUY entry can be offered. S/L can be set as a daily closure below 0.6750.
The material has been provided by InstaForex Company - www.instaforex.com