Forex Technical Update
The NZD/USD has been in a throwback after breaking above a declining trendline. The 4H chart shows the market come retrace 50% of the swing from 0.7650 to 0.7907. Note also the RSI reading failing to break below 40, suggesting maintenance of the bullish momentum. Price action to the upside during the 1/9 European session is a bullish continuation signal. If the RSI reading also pushes above 60, it will help confirm return of the bullish momentum. Near-term resistance is at 0.79, then 0.7930 (38.2% retracement seen in the daily chart). 0.8050 is the next important pivot, which is also near the 200 day simple moving average. If the market is able to then stay above 0.80, we should consider ability to push toward 0.8280. 61.8% retracement.
NZD/USD in the 1H chart below shows that it trades near 0.7855, 61.8% retracement of the recent throwback from 0.7907 to 0.7772. Inability to push above 0.7855 can suggest some extension of the bearish correction, perhaps toward 0.7750, 61.8% retracement seen in the 4H chart. Otherwise, if the 1H RSI stays above 40, and the market stays above 0.7820 area for a push above 0.7855, we can confirm the bullish continuation scenario.