The New Zealand Dollar pushed higher as we suspected, overturning the downtrend from mid-January with a falling trend line break. Prices are now testing above the 61.8% Fibonacci expansion at 0.8355, with a daily close above this barrier exposing the 76.4% level at 0.8427. Alternatively, a reversal below support at 0.8297, the 50% Fib, targets the 38.2% retracement at 0.8239.
Entering long here lacks confirmation of an upward breakout. On the other hand, a short trade in the face of potent upward momentum and the absence of a defined reversal signal is at best premature. As such, we will remain on the sidelines for now.