- NZDUSD halts decline at a fresh 9-month low of 0.5858
- Hovers around 61.8% Fibonacci retracement of the 0.5510-0.6535 upleg in the past three weeks
- Positive momentum is picking up, increasing odds for an upside violation of the recent range
NZDUSD had been stuck in a downtrend after posting a five-month high of 0.6410 in mid-July, which resulted in a fresh nine-month low on September 5. Since then, the pair has been consolidating around the 61.8% Fibo of 0.5902, with the momentum indicators currently pointing to an impending upside move.
Should buying interest intensify and the pair profoundly closes above the 61.8% Fibo of 0.5902, immediate resistance could be found at the 50.0% Fibo of 0.6023. Failing to halt there, the price might then ascend towards the 38.2% Fibo of 0.6144. Further advances could then cease at the 23.6% Fibo of 0.6294.
Alternatively, bearish forces could send the price to revisit its recent nine-month bottom of 0.5858. Diving below that territory, the pair could slide towards the 78.6% Fibo of 0.5730. A violation of that region could open the door for the September 2022 support of 0.5598.
Overall, NZDUSD is showing signs of life after a period of directionless trading. However, the bulls should not get excited unless the price clearly claims the 61.8% Fibo of 0.5902.
