Following broad based selloff in Dollar in Asian session, NZD/USD finally breaks 0.7171 short term top. The development suggests resumption of whole up trend from 0.5469. Outlook will now stay bullish as long as 0.7002 support holds. Next target would be 100% projection of 0.5920 to 0.6797 from 0.6589 at 0.7466.
The real test to the up trend would be found in 0.7557 long term cluster resistance. That coincide with 61.8% retracement of 0.8835 (2014 high) to 0.5469 at 0.7549. We’d look for loss of momentum approaching this level, to bring a sizeable medium term correction. That’s something for next year, anyway.
