New Zealand Dollar Technical Outlook

The NZDUSD reversed at the point that the rally from .5484 equaled the .4890-.5987 rally (.6581). This level is defended by the 50% retracement of the decline from .8220-.4890; at .6555. I wrote yesterday that “the Fibonacci confluence combined with overbought RSI favors a reversal. Coming under .6444 would suggest a reversal.” The NZDUSD has dropped below there so I am bearish. There is short term resistance at .6500. The subdivisions are clear and I favor the idea that the NZDUSD has topped.