Source: FXTrek Intellicharts
NZD/USD is holding above trendline support at 0.5430, but a break lower is likely to see the pair testing the 61.8% fib of 0.5279 - 0.5549 at 0.5382, a move that seems increasingly plausible if today's NZ CPI results fall in line with or more than expectations. On the other hand, if NZD/USD holds above support, indications that inflation pressures are not cooling could send the pair up towards the upper end of the channel formation that has thus far contained prices.
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