NZD/USD Technical Analysis: Holds above 50-day MA of 0.6802, Stuck in a three-month narrowing price range
NZD/USD pair is currently trading at 0.6817, having printed lows below the 50-day moving average (MA) of 0.6802 yesterday. Notably, the pair is lacking clear directional bias since early December, according to technical charts.
Daily line chart
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As seen above, the pair is trapped in a narrowing price range since Dec. 4.
A break above the upper edge of the triangle, currently at 0.6909, would signal a resumption of the rally from the October low of 0.6424 and could yield a rally to the psychological hurdle of 0.70.
A violation of the lower edge, currently at 0.6769, could yield a pullback to 0.6650-0.66.
It is worth noting that a prolonged period of consolidation often paves way for a violent move. So, the pair may witness a near 90-degree move post-breakout or breakdown.
Trend: Neutral