Technical outlook:
NZDUSD dropped through 0.6270 during the Asian session on Wednesday. The currency pair reversed from the 0.6363 high carved on Tuesday, having lost almost 100 pips. It is trading close to intraday support at around the 0.6970-75 area at this point in writing and is expected to stage a rally towards 0.6575 in the near term.
NZDUSD has carved a larger degree corrective wave between 0.7465 and 0.6195 as seen on the daily chart. The wave structure has unfolded as a complex combination terminating just below the 0.6200 mark. Also, note that prices have bounced back from the Fibonacci 0.618 retracement of the earlier upswing between 0.5470 and 0.7465.
The high probability remains for the uptrend to resume from here and push through 0.7465 in the coming weeks. Furthermore, NZDUSD has now carved a lower degree upswing between 0.6195 and 0.6400. It has been further retraced to the Fibonacci 0.618 levels, which is seen around 0.6270. Bulls will be poised to come back in control from here.
Trading plan:
Potential rally through 0.6575 at least against 0.6100
Good luck!
