NZD/USD Technical Analysis: Holds above 50-day MA of 0.6802, Stuck in a three-month narrowing price range

NZD/USD pair is currently trading at 0.6817, having printed lows below the 50-day moving average (MA) of 0.6802 yesterday. Notably, the pair is lacking clear directional bias since early December, according to technical charts. 

Daily line chart

As seen above, the pair is trapped in a narrowing price range since Dec. 4. 

A break above the upper edge of the triangle, currently at 0.6909, would signal a resumption of the rally from the October low of 0.6424 and could yield a rally to the psychological hurdle of 0.70. 

A violation of the lower edge, currently at 0.6769, could yield a pullback to 0.6650-0.66. 

It is worth noting that a prolonged period of consolidation often paves way for a violent move. So, the pair may witness a near 90-degree move post-breakout or breakdown. 

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