NZD/USD broke yesterday high, forging out a new 12 month high in the process. Beyond that, the recent move suggest at a new short-term bullish breakout as price move away from the consolidation area between 72.5 – 73.5.
From the weekly chart perspective, the bullish breakout has been long underway, with confirmation found 3 weeks ago when bears failed to break into the familiar trading range since Sep 2009. The short-term development certainly helps in this regard to strengthen the longer-term bullish momentum. Failure to maintain 73.5 may only serve to hamper shorter term bullishness, as bears will have their work cut out for them to bring price down back below 69.30, 400 pips below current levels, before current breakout is invalidated.
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