Possible Bull Flag On Kiwi!

A quick check of the NZD/USD pair shows a possible bull flag formation as the combination of New Zealand’s economic strength (as reported by better than expected GDP figures the other day) and potential for US dollar weakness perhaps due to QE3 rumblings mean that the Kiwi could be in for a move to the upside.
With a bull flag formation, you add the distance of the “flagpole” to the top of the resistance to get a projection for the potential move higher.  In this case, the distance of the flagpole is roughly 200 pips, so we are forecasting a price move to .87 if the pattern completes.




Source :forexnews.com