A downward correction could start.

On the 4-hour chart, the price tested the level of 0.6652 (61.8% correction), its breakout would allow the pair to grow to 0.6690 and 0.6720. However, a more likely seems a price reverse and the beginning of a downward movement along the 61.8% arc towards the levels of 0.6611 (50% correction) and 0.6572 (38.2% correction). On the daily chart, the price grew above the level of 0.6600 (23.6% correction) and if it consolidates above it, the growth might continue towards 0.6700 and 0.6815 (38.2% correction). However, a possibility of a downward movement towards the 50% fan line near the level of 0.6460 remains high.

Trading tips

Short positions look preferable. These can be opened from the level of 0.6630 with targets at 0.6611, 0.6572 and stop-loss at 0.6650.

Alternative scenario

Long positons can be opened after the price consolidation above the level of 0.6652 with the target at 0.6690 and stop-loss at 0.6620.

NZD/USD: Fibonacci analysis

NZD/USD: Fibonacci analysis

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