The NZD/USD pair is currently testing the upper limit of its sideways range, indicating a potential breakout to the upside in the near future. A move above the August 20 high would likely confirm a bullish breakout, with the pair possibly reaching the 0.6400s.
On the 4-hour chart, the pair briefly breached the range on August 20, hitting a high of 0.6248 before retracing back down and forming a bearish Gravestone Doji candlestick. However, a quick recovery followed, with the pair breaking out of the range again on August 23.
A break above the 0.6248 August 20 high would signal a decisive breakout, with an upside target of 0.6448 and a more conservative target of 0.6409. This move would also likely shift the short-term trend from sideways to bullish.
Conversely, a break below the 0.6109 swing low would confirm the sideways trend, potentially leading to a downward move towards the range lows in the 0.5850s.
Overall, the NZD/USD pair is poised for a potential bullish breakout, with the possibility of substantial gains in the near future. Traders will be closely watching for a move above the August 20 high to confirm the breakout and set the pair on a path towards higher targets.
