NAB Research discusses NZD/USD technical outlook and highlights the importance of the monthly close below 0.7018 for directional bias.
"Our focus this week is on the monthly close. Below 0.7018 will complete a decisive bearish MT/LT reversal pattern. Such a pattern would confirm a minimum downside target of 38.2% of the one year uptrend at 0.6703. ST and MT momentum bias remains comprehensively negative.
"Friday’s upswing confirms short squeeze risk that should not exceed the previous 2021 low around 0.7100. A month end close below 0.7018 will confirm that the recent downtrend is sustainable MT," NAB adds.