- NZD/USD has broken out of a multi-month range and is following through to the upside.
- The breakout activates upside targets and indicates the trend has probably turned bullish.
NZD/USD finally breaks out of its sideways range of several months, after knocking on the ceiling for several sessions. The pair breaks above the August 20 high confirming a breakout and indicating substantial probable gains on the horizon.
NZD/USD 4-hour Chart
NZD/USD is likely to rally to the next target at 0.6409, the December 2023 high. This is a conservative target for the pair – the breakout from the range activates an upside target that is higher at 0.6448, calculated by taking the 0.618 ratio of the height of the range and extrapolating it higher.
Since the break the short-term trend has now probably transitioned from sideways to bullish. Given “the trend is your friend” the odds favor long positions over short positions.
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