Since the beginning of the year, the currency pair gained over 2.5% but last week fell more than 0.5% and is in an accumulation phase since early January 2018.
Last week the NZDUSD attempted to rally but found enough selling pressure near 0.7435 to wipe out all of its gains and closed near the low of the week, however managed to close within the previous week range, which suggests being slightly on the bearish side of neutral.
The stochastic is showing a overbought market and is beginning to display bearish momentum.
The rally seems to have stop after making a new high for 2018 at 0.7437, which is practically the same level made in September 2017 where it began a sharp downward correction. The question now is will it make the same sharp correction as in 2017 or is just prompting for another push upward.
Expecting a downward move to a Fibonacci retracement at 0.7169 on a break below the previous week low at 0.7279 (scenario 1) however a bounce from the Fibonacci retracement at 0.7169 may push currency pair back up to the weekly resistance at 0.7279 (scenario 2).