The NZD/USD has been rallying sharply the last couple of sessions. After tagging 0.6910, NZD/USD rebounded sharply and broke above a falling channel as we can see in the 4H chart below.NZD/USD 4H Chart 4/13(click to enlarge)abc scenario:- First of all, we should note that the prevailing trend has been bearish, or flat at best.- A bullish outlook at the moment should be seen as a possible correction. Meaning, we should limit the bullish outlook until we see strong evidence that a bullish trend has developed.- An abc correction scenario, where wave c is projected to equal wave a in length, would project the bullish outlook to 0.71.- We should probably limit the target here because there is a previous support pivot at 0.7125-0.7130, which can turn into resistance especially if the overall market is still bearish.Back to the Middle:- The daily chart shows a market that has been in sideways consolidation since July 2016. - In a sideways market, we can say that the middle is the "fair price", or "equilibrium price".- Or we can imagine a gravitational pull back towards the middle if the market extends too much in one direction, given that the overall mode is still sideways.- We can also say that in a consolidation market, price should return towards the moving averages, especially if the moving averages are clumped together (which only happens after a period of sideways action). - In this case, the 0.71 area is in the middle of the 100- and 200-day simple moving average. - It is also just below the middle of the consolidation range. - A slightly more aggressive target could be 0.7150. But again, we are projecting towards the middle of the range because we can't always expect price to travel back to the upper bound of the range.- One strategy would be to exit most of bullish positions around 0.71, and hold a small one in case it does run to the upper bound. This way, if price fails to push higher, the damage would be minimal. NZD/USD Daily Chart(click to enlarge)