In its previous session, the NZDUSD currency pair showed its prices were consolidating, reflecting sideway channels in its price action under the 30-minute chart. The pair opened the session at 0.8077 and closed at 0.8084, 7 pips higher. Medial volatility affected the pair’s movement as shown by a ranging pattern all throughout the trading session.

Today, the NZDUSD trading pair is currently trading at 0.8088, moving within yesterday’s resistance level of 0.8093 beckoning a bullish breakout for the coming hours under the half-an-hour chart. Intimation of a bullish trend is apparent in the 30-minute frame as its Bollinger Bands(21) narrows its upper and lower lines to signal its support for a bullish breakout to manifest. Looking at the hourly chart, a similar trend is also appearing in its price movement, with its prices climbing due to the strong bullish momentum created by the bullish crossover pattern. Moreover, the Parabolic SAR(0.02,0.20) dot indicators are steadily arrayed beneath the candlestick formation indicating that the bullish pressure is also felt in the 30-minute and hourly chart.

The buy position can be attributed to the New Zealand dollar holding near a three-month high amid speculation policymakers from the European Central Bank and the Federal Reserve will announce additional policy measures to shore up the global economy. Having spent a couple of days within tight ranges the New Zealand dollar is destined to follow the same trail today.