NZDUSD is attempting to recoup some of Friday’s sharp losses, gaining 0.8% on the previous close. Today’s rally was capped by the 61.8% of the Fibonacci retracement level of the December-January downleg from 0.6882 to 0.6346.
With RSI trending up above 50 and the MACD turning positive, there is scope for further gains in the near term. Prices would need to break above the 61.8% Fibonacci level at 0.6675 and cross above the 200-day moving average to sustain the current positive bias. The next resistance should come at the previous closing resistance level of 0.6715.
To the downside, another sharp sell-off could see the pair breaching the psychological 0.66 level to find support at the 38.2% Fibonacci level at around 0.6550.
In the bigger picture, prices have been confined within a range of between 0.61 and 0.69 since last August and there appears to be little to threaten this range in the near to medium term.
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