An upward correction is probable.

On the 4-hour chart, the price tested the key support level at 0.6255 for the third time in a month and could not break it downagain. At present, the likely seems to be an upward movement of the price along the 61.8% arc towards the level of 0.6330 (61.8% Fibonacci correction). From there, the price is likely to reverse and fall to the key support level. The similar picture is on the daily chart. The price is testing the level of 0.6255 and its breakdown in the short-term would allow opening short positions towards 0.6200 and 0.6150.

Trading tips

Long positions can be opened from the current prices with the target at 0.6330 and stop-loss at 0.6260.

Alternative scenario

Short positions can be opened after the price consolidation below the level of 0.6255 with targets at 0.6200, 0.6150 and stop-loss at 0.6280.

NZD/USD: Fibonacci analysis

NZD/USD: Fibonacci analysis

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