Title: NZD/USD Pulls Back to Support, Uptrend Likely to Resume for Potential Substantial Gains
As the NZD/USD pair retreats to support in the 0.6250s following a higher high, the Relative Strength Index signals a sell-off. Despite this correction, the short-term trend remains bullish, indicating a possible recovery and extension towards higher highs.
The breakout above the August 20 high on Thursday confirms a bullish signal, suggesting significant potential gains in the near future. The next target for the pair is at 0.6409, the December 2023 high, with a more ambitious target at 0.6448 calculated by the 0.618 ratio of the range height.
Analysis:
In simple terms, the NZD/USD currency pair has temporarily dipped but is expected to bounce back and continue its upward trend. This presents an opportunity for investors to potentially profit from the expected gains in the market. Keep an eye on the targets mentioned for potential price movements in the near future.