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Hello, dear traders!

In this article, we will analyze the technical picture of NZD/USD, which is now seen by many as the major currency pair along with EUR/USD, GBP/USD, USD/JPY, USD/CHF, and commodity pairs AUD/USD and USD/CAD. The Reserve Bank of New Zealand is going to tighten its monetary policy by hiking rates. Inflation in the country soared after the COVID-19 pandemic when energy and commodity prices spiked. So, let's begin with the weekly time frame of NZD/USD.

WeeklyOn the weekly chart, we can see the 0.6211 low and the highlighted lower shadow of the candlestick from which the kiwi started to retrace up. The fact the pair's upward move is just a correction is clearly seen thanks to the Fibonacci grid drawn between 0.7028 and 0.6211. As we can see, the quote went slightly above the Fibonacci retracement of 38.2 and then encountered strong resistance at 0.6570. As a result, a reversal candlestick pattern emerged on the weekly chart. At least it looks like a reversal pattern in terms of its shape. After the formation of this candlestick, a downward reversal occurred.

https://www.fxmag.com/forex/nzd-usd-technical-analysis-and-forecast...