The overall 0.6962 to 0.6821 range this week for NZD/USD trades inside 141 pips and surpasses by 18 pips the 123 pip AUD/USD range. Despite the full 141 pip range, breaks at 0.6946 and 0.6845 cut the short term range to about 100. pips.
Most significant below at 0.6845 and above 0.6946 would allow NZD a further move up or down upon breaks. NZD below 0.6845 finds supports at 0.6839, 0.6932, 0.6824 and bottom break at 0.6821. Above 0.6946, the road is clear to 0.6962.
Longer term, 0.6962 remains highly oversold from the main break point at 0.7071. Higher for NZD must break 0.7071. Until 0.7071 breaks then any rises in NZD are results of corrections from oversold conditions. NZD/USD’s price is low yet its balanced V USD. USD/NZD trades at about 1.4501 and a range break isn;t seen until 1.3995 below and 1.5025 above and translates to NZD/USD 0.6655 and 0.7145. NZD/USD ranges 141 pips inside USD. Both NZD and USD are close to top of the range.
Brian Twomey, Inside the Currency Market, btwomey.com