Only 2 currency pairs among the majors have equal correlational association to their cross pairs, NZD and GBP.
Currently, NZD/USD correlates +90% to NZD/CAD, NZD/CHF, NZD/EUR and NZD/AUD.
For NZD/JPY, the correlation remains negative at minus 0.05. The commonality in JPY pairs is only GBP/JPY correlates to GBP/USD while EUR/JPY correlates minus 52% to EUR/USD and AUD/JPY correlates minus 67% to AUD/USD.
NZD/USD at 0.7300 encounters solid resistance at 0.7445 and is the 10 year average. Next above 0.7445 comes 0.7567. On the bottom exists many solid supports at 0.7190, 0.7167 and 0.7140. Overall, the range from 0.7190 to 0.7445 is 255 pips. In the larger picture, 0.7100’s was built upon 0.6600 and 0.6800’s. From 0.6600, NZD/USD is dead center middle range. In the interim, 0.7100’s was built upon the current base at 0.7056.
Longs must hold above 0.7291 and 0.7262 then overbought begins at about 0.7380; to 0.7409. A break of 0.7291 and 0.7262 then watch for the next level at 0.7190. Long any drops has been the long standing strategy.
Brian Twomey, Inside the Currency Market, btwomey.com