Hello traders! The NZD/USD currency pair has corrected won sharply though this week. Although this certainly looks like a correction rather than a downtrend. Therefore, buyers could have been attracted by the price, while it has clearly rejected the key psychological support at 0.6600.
All-in-all, we might have witnessed an ABC correction, which has ended already. Based on the Fibonacci retracement indicator applied to the corrective wave down after breaking above the 50 Exponential Moving Average back on August 26, there is a strong resistance located at 827.2% retracement level. It corresponds to the 0.6800 psychological level and could be the next key target for buyers.
Besides, we can see the rejection of the 227.2% Fibs, back on September 9. Fibs were applied to that correction and we can see taht 1261.8% retracement level cleanly corresponds to the previously mentioned key resistance at 0.6800.
Therefore, as long as price stays above the recently printed low at 0.6600, the uptrend will remain valid and should result in over 100 pips growth from the current price.
Bias: Strongly bullish while above 0.6600
Potential Support Zone: 0.6660 – 0.6680
Potential Targets: 0.6800
Have a profitable trading!