NZD/USD Climbs to Fresh Weekly High

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NZD/USD extends the rebound from the start of the month to register a fresh weekly high (0.5968), and a close above the 0.5920 (61.8% Fibonacci extension) to 0.5930 (78.6% Fibonacci extension) region may push the exchange rate toward the 0.6040 (61.8% Fibonacci retracement) to 0.6070 (61.8% Fibonacci extension) zone.

A breach of the July high (0.6120) opens up the 0.6170 (50% Fibonacci extension) to 0.6190 (78.6% Fibonacci retracement) area, but lack of momentum to close above the 0.5920 (61.8% Fibonacci extension) to 0.5930 (78.6% Fibonacci extension) region may push NZD/USD back toward the monthly low (0.5857).

A breach of the May low (0.5847) brings 0.5830 (38.2% Fibonacci retracement) on the radar, with the next area of interest coming in around 0.5740 (78.6% Fibonacci retracement) to 0.5760 (100% Fibonacci extension).

--- Written by David Song, Senior Strategist at FOREX.com

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