Technical outlook:
NZDUSD dropped through 0.6240 during the New York session on Tuesday, alongside most other risky assets. The price action has been in line with earlier projections and the pair seems to have found potential support at around the 0.6230-40 zone. Bulls will be now poised to hold prices above 0.6195 to keep the immediate structure intact.
NZDUSD has carved a larger degree corrective drop between 0.7465 and 0.6195 from February 2021 until recently. The entire drop might have terminated at around 0.6195, which is also close to the Fibonacci 0.618 retracement of the larger degree upswing between 0.5470 and 0.7465. The high probability remains for bulls to come back in control now.
NZDUSD has also carved a lower degree upswing between 0.6195 and 0.6400 in the recent few sessions. The boundary has been retraced up to the Fibonacci 0.786 level close to 0.6240. Traders might be willing to add fresh long positions around current levels, targeting above the 0.6575 initial resistance.
Trading plan:
Potential rally through 0.6575 at least against 0.6100
Good luck!
