Daily Forex Update: NZD/USD

The 240-minute NZD/USD broke higher through resistance at 0.7138 – the price at which a breakout buy was triggered on the Triangle pattern’s downtrend line. Currently, the pattern has an Autochartist Initial Trend reading of three bars, which is ideal for this non-trending consolidation pattern (a three-bar reading points to an accumulation cycle, which is a narrow ranging, non-trending market). The move higher has maintained support above the pattern’s top line, and this bodes well for continuation higher to Autochartist’s Forecast area between 0.7173 and 0.7215; another factor that could play into upside follow-through is the activity on the Gold market, because the NZD/USD is a commodity currency that often tracks with precious metals.