The New Zealand Dollar looks poised to extend higher against its US namesake after clearing resistance at 0.8322, the 23.6% Fibonacci expansion. The bulls now aim to challenge the 0.8372-82 area, marked by a horizontal pivot level dating back to September, the 38.2% Fib, and a falling trend line set from mid-October. Pushing above this barrier exposes the 50% expansion at 0.8412. Alternatively, a reversal back below 0.8322 targets the
As we noted yesterday, maintaining a risk/reward ratio of at least 1:1 calls for a long entry price no higher than 0.8312. This level is not only below the current market, but underneath near-term support as well. That argues against taking a trade at present and we will remain on the sidelines, monitoring how the pair behaves at resistance near the 0.84 figure to plan our next move.