NZDUSD is neutral in the short-term after a bullish move from the 0.6800 handle. The trend signals on the 4-hour chart are bullish, defined by a crossover of the 50 SMA above the 200 SMA. The market has now entered a consolidation phase after rising to its highest level since October 20 last Friday at 0.7033.
NZDUSD is expected to find support on dips at some key Fibonacci retracement levels of the recent upleg from 0.6827 to 0.7033. Immediate support is now at 0.6984 (23.6% Fibonacci) followed by 0.6954 (38.2% Fibonacci).
A deeper retracement will risk eliminating the short term bullish outlook but as long as the market remains above the key 0.6900 level there is room for an extension above the 0.7033 peak towards the key 0.7100 area.
A clear break above the December 15 high would indicate the market has clearly moved into a bullish phase. For now, more range-trading is expected as the RSI has turned neutral and upside momentum has faded.
