A downward correction might continue.

On the 4-hour chart, the price tested an important resistance at 0.6700, but failed to break it out and, at present, is declining towards 0.6652 (61.8% correction) and 0.6612 (where the 50.0% correction for the short-term trend and the 23.6% correction for the medium-term trend have concentrated). An upward trend would resume if the price turns up and overcomes the level of 0.6700. In this case, a growth would continue towards 0.6730 and 0.6782 (100.0% correction).

The daily chart gives the same picture. The price is testing the level of 0.6700, the breakout of which would lead to a growth to the level of 0.6755, towards its crossover with the 61.8% fan line and the 50.0% arc, along which the price would start declining. However, the price is likelier to remain below the level of 0.6700 and continue its downward correction towards 0.6640, 0.6600 and 0.6560.

Trading tips

Sell the pair from the level of 0.6640 with targets at 0.6600, 0.6560 and stop-loss at 0.6670.

Alternative scenario

Buy the pair after the consolidation above the level of 0.6700 with the target at 0.6755 and stop-loss at 0.6680.

NZD/USD: Fibonacci analysis

NZD/USD: Fibonacci analysis

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