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NZD/USD Rages On; Cracks Key Resistance

We spotted NZD/USD testing a price top yesterday after it bounced off a rising trendline shown in the 1H chart. I mentioned that a break above 0.97 would be an indication that bulls are back in charge. An Asian and half a European session later, this appears to be the case.

NZD/USD 1H Chart 10/14/2015


(click to enlarge)

The 1H chart simply shows a pair that has been bullish since the end of September and is still bullish after the most significant consolidation so far this month. When we look at the daily chart, we can see that this latest push is also cracking some key resistance pivots. 

NZD/USD Daily Chart 10/14
(click to enlarge)

At this point I am convinced that NZD/USD has shifted from a medium-term downtrend to a short-term uptrend. The medium-term outlook may be more or less neutral, so I would limit the bullish outlook for example to the 0.72 pivot area, which would be a decent gain. The reward to risk would be much better if we get a week or two of pullback towards the 0.64-0.65 area to test the September price bottom. 

In the short-term though, we might have upside risk towards 0.70 and we might consider buying on a pullback towards 0.67.