NZDUSD Wave Analysis 23 December, 2020

• NZDUSD reversed from support area

• Likely to rise to 0.7200

NZDUSD recently reversed up from the support area lying between the pivotal support level 0.7010 (which has been reversing this currency pair from the start of December) and the 38.2% Fibonacci correction of the upward impulse from November.

The upward reversal from this support area is likely to form daily Japanese candlesticks pattern Bullish Engulfing – next to the previous daily Hammer.

Given the prevailing uptrend – NZDUSD is expected to rise further toward the next resistance level 0.7200 (which stopped the previous minor impulse wave 3).