NZD/USD Popping up Above a Double Bottom to Continue Uptrend

The NZD/USD had a very choppy day during the 1/30 US session, at the end of which there was a quick spike to the downside and an immediate recovery. In the 1H chart, this shows up as a double bottom. As we enter the 1/31 Asian session, the market rallies above this bottom and is looking to continue the uptrend. The short-term resistance is at 0.8248, last week's high.

The daily chart shows that the market was falling from a previous resistance pivot from Oct. 2011. However, the RSI suggests that the previous time, the momentum was held persistently bearish. However, this time, the RSI popped up above 70, and shows bullish momentum, although the near-term may be overbought.

The bullish outlook first has last week's high up to 0.8279 (61.8% retracement) as near-term resistance. Above that, we are looking at the next resistance area between the 78.6% retracement at 0.8526 and the resistance pivot from 8/31, at0.8574.

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Fan Yang CMT is the Chief Technical Strategist of IBTRADE and FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes and IBTRADE will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.