16 days and 628 pips
The NZDUSD last bottomed 16 days ago at 0.5920. The price just peaked at 0.6548. That is 628 pips in 16 days. The % gain is 10.6%. That is a big gain for a currency in a short period of time.
The high price today has gotten to within 4 pips of a low of a swing area between 0.6552 to 0.6586. The high today reached 0.6548. The price has moved higher 5 consecutive days (today is the 6th). Do we start to see some profit taking?
You have to be careful with trend moves (trend go farther than you expect or think), but I would expect some selling in the 0.6552-86 area, with stops on a break higher. Having said that I would prefer to lean more between the swing area (not at the bottom of it). However, there may be some toes in the water here (profit taking).
Drilling to the hourly chart, what gives some caution on selling is the pair remains above an upward sloping trend line at 0.6525 (and rising). Stay above is more bullish. Move below and the sellers have some hope the high is in place and there may be more selling toward the 0.6482 area followed by the rising 100 hour MA at 0.64537. .
On the topside, the 0.6571 is a high topside trend line. That trend line might be a target for patient/cautious sellers ahead of the 0.6586 level from the daily chart.
