NZD/USD Classical Technical Report 09.29
NZD/USD: Similar to the other major currencies that were sold off in favor of the U.S. Dollar late last week, the New Zealand Dollar has seen a bit of a corrective rally the past few days. The correction was necessary; as the pair was significantly oversold. Our assessment holds that recent moves open a fresh downside extension exposing 0.7000-0.7500 and officially confirms a major lower top by 0.8570 below the 0.8845 post float record highs from July. Still, as noted earlier, further consolidation could occur as the pair unwinds some of its recent downside pressure. Indeed, the consolidation shows that the rally may be exhausted at present time. Look for inter-day rallies to be well capped below 0.8000 on a daily close basis while ultimately, only back above 0.8250 would delay. Back under 0.7635 will accelerate and open the next downside extension.
Written by Christopher Vecchio, Currency Analyst
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