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.

Joaquin Monfort FXStreet

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.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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