NAB discusses NZD/USD technical outlook and highlights the key levels that need to hold for the medium-term downtrend to remain intact.
"Price recently held the lower daily Bollinger band at 0.6500/05. Note that the daily Bollinger bands have coincided with a number of tops/bottoms in 2018.
A monthly close above 0.6675 (LT 61.8% retracement) would imply that the MT downtrend lacks the impulsive structure seen throughout much of 2018," NAB notes.
"The top of the August correction at 0.6727 is crucial to maintaining the MT downtrend structure. A daily close above 0.6727 will also have broken the downtrend channel and upper daily Bollinger band and confirm that the MT downtrend is broken," NAB adds.