The RBNZ is extensively anticipated to hike rates of interest once more this week, so I’m this potential bullish play on NZD/USD.

Can the pair maintain its climb after breaking above this reversal sample’s neckline?

Earlier than you try the setup, be sure to know all of final week’s main market movers in addition to this week’s potential market catalysts!

NZD/USD 1-hour Foreign exchange Chart by TV

Kiwi bulls appear excited to cost of their expectations for an RBNZ hike, as NZD/USD already busted via its double backside neckline earlier than the precise occasion.

This chart sample spans a little bit over 50 pips, so the pair could be in for a rally of no less than the identical measurement.

Nonetheless, the .6300 main psychological barrier has confirmed to be a tricky ceiling to interrupt via, main value to retreat to close by help zones.

The Fibonacci retracement instrument exhibits ranges the place consumers could be ready to hop in and presumably maintain the uptrend.

The 38.2% degree appears to have drawn some shopping for curiosity already, as a reversal candlestick shaped proper on this help space.

If the pair is up for a bigger correction, I’ve acquired my eyes on the 50% Fib degree, which is near the .6250 minor psychological mark and former neckline resistance.

In any case, technical indicators are nonetheless reflecting the presence of bearish vibes, so the pullback may proceed till a bullish transferring common crossover occurs or Stochastic pulls up from the oversold area.