Price shot up and reached our profit target perfectly before dropping strongly. This is a perfect example of putting profit targets at key levels. We now turn bullish above 0.6818 support (Fibonacci extension, Elliott wave theory) and look for a bounce towards 0.6874 resistance (Fibonacci retracement, horizontal pullback resistance).
Stochastic (21,5,3) is approaching strong support at 9% where we expect a bounce from.
RSI (34) has made a bearish exit signalling that the overall momentum we're expecting of NZDUSD is bearish.
Correlation analysis: NZD/USD and AUD/USD are positively correlated meaning they usually move together in the same direction. We are expecting a rise on AUD/USD and a rise on NZD/USD which goes well with the positive correlation expected.
Buy above 0.6818. Stop loss at 0.6789. Take profit at 0.6874.
