Technical outlook:
NZDUSD rallied through the 0.6326 highs intraday on Monday before finding resistance and reversing lower. The currency pair is trading close to 0.6295 during the Asian session on Tuesday and is expected to re-test the 0.6270 lows before resuming its rally. The medium-term structure remains constructive for bulls until prices stay above 0.6195.
NZDUSD has been dropping since February 2021 after printing highs at around 0.7465. The entire drop between 0.7465 and 0.6195 looks like a complex corrective pattern, which might be complete just below 0.6200. Furthermore, prices have found support just below the Fibonacci 0.618 retracement of the larger-degree upswing between 0.5470 and 0.7465.
NZDUSD has now managed to carve a lower-degree upswing between 0.6195 and 0.6400 as seen on the daily chart. Prices have retraced the above and found support just below the Fibonacci 0.618 level as well. Bulls have also managed to carve a Morning Star pattern on the daily chart. The high probability remains for a turn higher soon.
Trading plan:
Potential rally through 0.6575 against 0.6100
Good luck!
