NZD/USD Technical Analysis: Corrective rally may gather pace
|- The NZD/USD's corrective rally from the Oct. 7 low of 0.6424 looks set to gather pace as the hourly chart shows a bull flag breakout.
- The currency pair has also found acceptance above the trendline sloping downwards from the Sept. 26 high.
- The 14-day relative strength index is bouncing off the oversold level and the MACD is showing the bearish move is running out of steam, adding credence to bullish setup on the hourly chart.
- The pair looks set to test 065 and may possibly break higher if the US consumer price index (CPI) misses estimates by a big margin.
Hourly Chart
Spot Rate: 0.6470
Daily High: 0.6476
Daily Low: 0.6445
Trend: Bullish
R1: 0.65 (psychological hurdle)
R2: 0.6529 (38.2% Fib R of 0.6699/0.6424)
R3: 0.6562 (50% Fib R of 0.6699/0.6424)
Support
S1: 0.6465 (100-hour exponential moving average)
S2: 0.6424 (Oct. 7 low)
S3: 0.64 (psychological support)
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