NZD/USD Technical Analysis: 0.6904 is the level to beat for the bulls

The pullback from the NZD/USD pair from the recent high of 0.6969 has likely run out of steam. A break above 0.6904, however, is needed to put the bulls back into the driver’s seat.

Daily chart              

• As seen above, NZD/USD created a doji candle at the 200-day moving average (MA) support yesterday, signaling indecision in the marketplace.
• A close above 0.6904 (Doji candle’s high) would signal another higher low has been made at 0.6840 and will likely be followed by a rally to 0.6969 (recent high).
• The bullish crossover between the 50- and 100-day MA favors a break above 0.6904.

4-hour chart

• Over on the 4-hour chart, the pair is struggling to capitalize on the falling wedge breakout. Moreover, a convincing move above 0.6904 (neckline of the inverse head-and-shoulders) is needed to confirm a bullish reversal.
• The prospects of a rally to 0.6969 would weaken significantly if the pair closes today below 0.6840 (Doji candle’s low), implying a continuation of the sell-off from the recent high of 0.6969.

Trend: Bullish above 0.6904