Technical analysis
The RSI indicator has turned bullish on the daily time frame and is now issuing a medium-term buy signal for the NZDUSD pair.
The NZDUSD pair looks to be targeting towards the top of a broadening wedge or megaphone style pattern, around the 0.7120 resistance level.
What the possible outcomes are
In our most likely scenario, the NZDUSD pair will test towards the top of the large broadening wedge pattern, around the 0.7120 level before staging a price correction.
Alternatively, the NZDUSD could break above the top of broadening wedge pattern on the first attempt and rally straight through to the 0.7280 resistance level.
Key levels
Support 0.7030 0.6990
Resistance 0.7120 0.7280
