NZDUSD continues to trade inside the medium-term bullish channel. After challenging the lower channel boundary just above 0.71, price has bounced towards 0.7230. Price is now at 0.7175 and current price formation makes us expect another move higher at the start of next week.
Blue lines - medium-term bullish channel
Red lines - expected equal size upward move
NZDUSD is expected next week to move higher towards 0.7290. As long as price is above recent low at 0.7150 we are bullish near-term for a move towards 0.7290. So far price retraced 38% of the downward move that challenged the bullish channel.
Next week I expect NZDUSD to continue higher towards the 50% Fibonacci retracement. As long as price is inside the upward sloping channel bulls remain in control of the medium-term trend. We continue to consider each pull back as a buying opportunity. Everything changes however if price fails to hold 0.7150-0.7120.
