Last week saw a strong move higher in NZDUSD that confirmed a break of key moving averages in both spot NZDUSD and the RSI indicator.
This change to a bullish tone comes after February’s negative move yielded only limited downside. Importantly that decline stalled at a 50% correction to the Sep’15 to Sep’16 rise – just as the fall that ended last year did.
3 successive weekly gains in NZDUSD, continued in initial price action this week, has taken our signals for sentiment to overbought extremes but we’re looking for the upside to extend over the coming weeks, with the downside protected by the 21 week moving average.
On the topside, our current targets for NZDUSD are .7240 and .7376.
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