By: Dima Chernovolov
NZD/USD continues to rise in the direction of the hourly key resistance level 0.7206 (of the type Approach) which was previously identified by Autochartist. Autochartist rates the significance of this key resistance level at the 5 bar level – which is the result of the 5 previous price reversals from this price level. NZD/USD is expected to continue to rise toward the resistance level 0.7206 – in line with the earlier upward reversal from the support area shown below.
As can be seen from the daily NZD/USD chart below – the price earlier reversed up from the support area located between the key support level 0.71000 (which has been reversing the price from the middle of January), lower daily Bollinger Band and the 38.2% Fibonacci correction of the previous extended upward impulse from last October. The proximity of this support area and the oversold daily Stochastic increase the probability NZD/USD will continue to rise toward the resistance level 0.7206.