Posted on March 12, 2015 by the XM Investment Research Desk at 7:39 am GMT
NZDUSD bounced back post-RBNZ this morning. The pair had almost retraced the entire upleg from a 4-year low of 0.7175 to 0.7612. Prices tested the 50% Fibonacci retracement level of 0.7393.This is a critical level. A break above this would strengthen the upside momentum with scope to target the February 26 high of 0.7612.
Looking at the long term chart, the trend was bearish since prices declined from the July 2014 peak of 0.8835 to the 4-year low of 0.7175. This low may prove to be very strong support and for now more signals are needed to determine a clearer trend going forward. The doji candlestick on the weekly chart denotes indecision.