NZD/USD – Why 73 Cents is Important

NZD/USD – Why 73 Cents is Important

NZD/USD – Why 73 Cents is Important

For the past few weeks, NZD/USD has made many attempts to close above 73 cents and for the most part it has been unable to do so. Yesterday, strong employment numbers and a sharp increase in dairy prices failed to help the currency pair sustain its gains and that suggests that NZD/USD is nearing a top. The reason why 73 cents is so important is not just because it’s a 1 year high or that the pair has attempted to close above that level on numerous occasions but because it’s the 38.2% Fibonacci retracement of the 2009 to 2011 rally. If this year’s high of 0.7340 is broken, then its clear sailing to 75 cents. If 0.7340 holds and NZD/USD drops back below 72 cents, then we are looking at the possibility of a stronger pullback towards 71 cents.

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