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.

Omkar Godbole FXStreet Contributor

Hourly Chart

Spot Rate: 0.6470

Daily High: 0.6476

Daily Low: 0.6445

Trend: Bullish

Resistance

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)

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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