NZDUSD has reached the area where we expected a bounce to follow. There are bullish divergence warning signs and a pause in the down trend. We expect Dollar weakness to affect NZDUSD positively.
I believe this is not the time to be short or looking to add to short positions in NZDUSD. I expect NZDUSD to bounce at least towards the 38% Fibonacci retracement level of the last leg down from 0.6755. So my first target is at 0.6410 from the current 0.6260 area. Resistance is found at 0.6318 and if it is broken, the chances for a move towards 0.6410 increase.
