Axel Rudolph, Analysts at Commerzbank, notes that investors should adopt buy the dips strategy in the NZD/USD pair, as it remains poised to test the September 2017 high of 0.7435.
Key Quotes:
“NZD/USD sliced through the July-to-January downtrend line at .7165 and rose above the 61.8% Fibonacci retracement at .7261 towards the June high at .7347. Once overcome, the 78.6% Fibonacci retracement at .7392 and also the September peak at .7435 will be in focus. Still further up sits the July peak at .7559. Immediate upside pressure will be maintained while the currency pair trades above its .7073 current January low.”
“Support above this level can be seen at the .7209/01 July low and October high as well as at the August low at .7131. While the next lower .6989/53 55 day moving average, November high and the December 20 low underpin, we will retain our medium-term bullish view. Below the .6953 level the October-to-December lows can be spotted at .6818/.6780.”
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