Talking Points:
The New Zealand dollar paused for a brief respite after falling for five consecutive sessions against its US namesake. A daily close above the 50% Fibonacci expansion at 0.8144 exposes the 38.2% level at 0.8206. Alternatively, a renewed downward push below the 61.8% Fib at 0.8082 clears the way for a challenge of the 76.4% expansion at 0.8006.
The appearance of an Inverted Hammer candlestick hints a bounce may be brewing ahead, arguing against entering short. Prices are too close to resistance to justify taking up the long side from a risk/reward perspective however. With that in mind, we will remain on the sidelines for now.