NZD/USD seems to need more buying power before sustaining its recent rallies, and a quick retracement might be in the cards.
The Fibonacci retracement tool on its 1-hour time frame shows that the 38.2% Fib is in line with the previous highs around the .8400 handle while the 61.8% Fib is in line with a former resistance area around .8350. A pullback to these levels could result to a continuation of the pair’s uptrend.
Stochastic is still pointing down, which means that Kiwi bears could push the pair a bit lower. A turn from the oversold region could mean that the rally is underway.
Going long at .8350 with a stop below .8300 and a target of the previous highs around .8500 would be a good return on risk for a day trade.
By Kate Curtis from Trader’s Way