Technical outlook:
NZD/USD is holding up above the 0.6330 mark intraday on Tuesday, after having dropped through 0.6195 lows over the last week. The currency pair earlier pushed through 0.6400 before pulling back and is now seen to be trading close to the 0.6335 mark. Bulls will be poised to hold prices above 0.6190 interim lows to keep the structure constructive.
NZD/USD has recently been dropping from 0.7465 and might have terminated its corrective decline around the 0.6195 mark. Notably, the pair has found support just below the Fibonacci 0.618 retracement of the larger degree upswing between 0.5470 and 0.7465.
NZD/USD bulls will be poised to come back in control from here and push through 0.6570-75, which is initial resistance, in the near term. A break there will confirm that bulls are back in control and that the potential trend has also reversed. Traders might be inclined to initiate fresh long positions between 0.6195 and 0.6400 with a risk below 0.6195.
Trading plan:
Potential rally through 0.6575 against 0.6100
Good luck!
