Technical outlook:
NZDUSD dropped through the 0.6250 lows intraday on Thursday, almost testing the 0.6245 lows printed on Wednesday. The currency pair is seen to be trading near the day's low at this point in writing and is expected to find strong support ahead of the 0.6195 mark. Bulls are looking poised to come back in control from here and push through 0.6575 at least in the near term.
NZDUSD might have terminated a larger degree corrective wave, which began from 0.7465 in February 2021. The corrective combination dropped through the Fibonacci 0.618 retracement of the larger degree upswing between 0.5470 and 0.7465 before bouncing back. We expect higher highs and higher lows from here on with the 0.6195 support intact.
NZDUSD also carved a lower degree upswing between 0.6195 and 0.6395 in the past few trading sessions. Furthermore, prices have retraced the above rally and are close to the Fibonacci 0.786 levels at around 0.6240. If the above structure holds well, prices would stay above the 0.6195 mark and push through 0.6575 in the near term.
Trading plan:
Potential rally through 0.6575 against 0.6100
Good luck!
