- NZD/USD defended key MA in early Asia and is now trading above 0.6480.
- The pair created an inside bar pattern on Wednesday, a sign of indecision or consolidation following a notable sell-off.
NZD/USD is currently trading at 0.6485, representing 0.10% gains on the day, having bounced up from the 50-hour moving average support five hours ago.
The MA support is now located at 0.6456.
Inside bar
The pair rose 0.53% on Thursday, but the price action fell within the high and low clocked on Wednesday.
Essentially, NZD/USD created an inside bar candlestick pattern on Thursday, which represents consolidation or bearish exhaustion following a notable sell-off (Kiwi dropped from 0.6791 to 06377 in three weeks to Aug. 8).
A bullish reversal, however, would be confirmed only if the pair validates the inside bar with a close above 0.6492 (previous day’s high).
Also, a close below 0.6433 (previous day’s low) would signal a continuation of the sell-off.
Daily chart
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Trend: Bullish above 0.6492
Pivot points
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