After going out of range, higher targets were activated

• NZD/USD has broken out of a multi-month range and is continuing higher.
• Breakout activates upside targets and probably indicates the trend has turned bullish.

NZD/USD is finally breaking out of its multi-month sideways range after hitting the ceiling for several sessions. The pair breaks the August 20 high, confirming a breakout and indicating likely substantial gains on the horizon.

NZD/USD 4 Hour Chart

NZD/USD is likely to rise to the next target at 0.6409, the highest level since December 2023. This is a conservative target for the pair – break of the range activates an upside target which is higher at 0.6448, calculated taking the 0.618 ratio of the range height and extrapolating it higher.

Since the break, the short-term trend has likely shifted from sideways to bullish. Given that “the trend is your friend,” the odds favor long positions over short positions.