NZD/USD Price Prediction: Pulls back down to support but trend remains bullish
|- NZD/USD has pulled back down to support but remains in an uptrend which will probably resume.
- The breakout from the range on Thursday gave a bullish signal and suggests substantial gains.
NZD/USD pulls back to support in the 0.6250s after making a higher high. The correction is in line with the Relative Strength Index exiting overbought, which has given a sell signal.
The short-term trend is bullish, however, and given “the trend is your friend” the odds favor a recovery and extension to higher highs.
Thursday’s break above the August 20 high confirmed a breakout and indicated substantial probable gains on the horizon.
NZD/USD 4-hour Chart
The next target is at 0.6409, the December 2023 high. This is a conservative target for the pair – the breakout from the range activates an upside target that is higher at 0.6448, calculated by taking the 0.618 ratio of the height of the range and extrapolating it higher.
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