Since the beginning of the year, the currency pair lost over 0.5% but last week remained flat with a minor gain of 0.22% and is in a bearish phase since late October after the death cross.
Last week the NZDUSD went back and forward without any clear direction but closed in the green, in the middle of the weekly range, in addition managed to close within the previous week range, which suggests being clearly neutral, neither side is showing control.
The stochastic is showing an oversold market and is displaying lack of momentum.
The downward correction seems to have stop after making a new low for 2017. Seems like the 2017 high is set at 0.7558 and the low at 0.6780 as we enter the holiday session I am not expecting any changes on the Years high and low.
Expecting a downward move to 2017 low at 0.6780 on a bounce from a Fibonacci retracement at 0.6964 (scenario 1) however a break above the Fibonacci retracement at 0.66964 may push currency pair back up to another Fibonacci retracement at 0.7077 (scenario 2).