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NZD/USD consolidates above 0.6448, below 0.6394 to trigger a correction

NZD/USD consolidates above 0.6448, below 0.6394 to trigger a correction

If the kiwi closes above 0.6448 would extend the consolidation phase further while a close below 0.6394 would see a small top completed triggering a correction.

Key quotes

“A close back above 0.6448 today, after the unwinding of the oversold RSI momentum, would suggest an extension of the consolidation phase, which then might result in a fresh test of the pivotal 2014 downtrend and current June high at 0.6566/84. Removal of here would then reinforce the view that we are seeing a broader change in trend to the upside, with resistance seen thereafter at 0.6665.”

“A sustained close below the 13-day average at 0.6394 today would mark the completion of a small top, which would then trigger a short-term correction and see a move back to the 21-day exponential average, 200-day average and 23.6% retracement of the 2020 surge at 0.6321, which ideally holds.”

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