Pulls back down to support but trend remains bullish

• NZD/USD has pulled back down to support but remains in an uptrend which will probably resume. 
• The breakout from the range on Thursday gave a bullish signal and suggests substantial gains.  

NZD/USD pulls back to support in the 0.6250s after making a higher high. The correction is in line with the Relative Strength Index exiting overbought, which has given a sell signal. 

The short-term trend is bullish, however, and given “the trend is your friend” the odds favor a recovery and extension to higher highs. 

Thursday’s break above the August 20 high confirmed a breakout and indicated substantial probable gains on the horizon. 

NZD/USD 4-hour Chart 

The next target is at 0.6409, the December 2023 high. This is a conservative target for the pair – the breakout from the range activates an upside target that is higher at 0.6448, calculated by taking the 0.618 ratio of the height of the range and extrapolating it higher.