MARKET TALK: NZD/USD Rally Targets Extension To 0.8500

The rally in NZD/USD targets extension to 0.8500 following the probe into fresh five-month highs above 0.8409. A daily close above 0.8381 would keep the tone positive for more gains towards a 1.618 Fibonacci extension target at 0.8479, which is close to the 76.4% Fibonacci retracement level of the August 2011 to November 2011 0.8845/0.7371 decline, at 0.8500. A lower high at 0.8574 from August 2011 completes the large resistance cluster. Failure to keep support at 0.8324 intact would question the positive NZD outlook, exposing 0.8274 and the February 10 higher low at 0.8250. NZD/USD trades at 0.8392. -By Francis Bray, Dow Jones Chief Technical Analyst For Europe.(francis.bray@dowjones.com) (This article is general financial information, not personalized investment advice, as it does not consider the unique circumstances affecting an individual reader's decision to buy or sell a specific security or currency. Dow Jones does not warrant the accuracy, completeness or timeliness of the information in this article, and any errors will not be made the basis for any claim against Dow Jones.