The recent surge of the New Zealand Dollar against the US Dollar, which was hard to map seems to have ended. The currency exchange rate surged in an ascending wedge pattern until it reached a combined resistance of a long term descending channel pattern and the 23.60% Fibonacci retracement level near the 0.7220 mark. The relevant Fibonacci retracement levels on this pair are measured by connecting the 2016 high and low levels. In accordance with the large scale pattern, the rising wedge's support line is set to be broken in the near future. That move should be followed by a decline as low as the 38.20% Fibonacci retracement level at the 0.7054 mark.



Source: Dukascopy Bank SA
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