NZDUSD has finally confirmed our reversal warnings and is moving higher towards important Fibonacci retracement levels. Our first bounce target is very close and as long as there is Dollar weakness across the fx markets, we continue to expect a bigger bounce.
In our previous analysis we noted the warnings for bears that a bounce in NZDUSD was coming. Price is moving higher and the RSI is moving away from oversold levels as expected. Price should at least reach the 38% Fibonacci retracement level. This is our first target. Support is at 0.6245 and resistance at 0.6325. A daily close above resistance will increase the chances of reaching 0.6410. We also keep a close eye on the RSI as we do not want the price of RSI to move below the red trend line. If this happens then we should postpone our short-term bullish scenario and expect new lows.
