NZDUSD has been a buyers market for the last few months with price holding above the mean value and making new highs as it steps up into the chart. RIght now the market is interacting with a stubborn resistance level which has managed to contain price for the last few weeks.
While the mean value still maintains the buoyancy of price and holds as dynamic support, a situation has developed where the momentum of the mean value an the market has jammed price between the resistance level and the mean value. Both are containing price but eventually something will give. Generally it’s the momentum of the mean value that will be the dominating force in the market, so in this case we’re anticipating breakouts to the high side.
The last two daily candles have also showed rejection of the lower prices, reinforcing our bias for an upside breakout.If price breaks past the high’s of the rejection candles, it could trigger the breakout to the high side.
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