Strategy: Pending Short
NZDUSD put in a Bearish Engulfing candlestick pattern below support-turned-resistance in the 0.8039-0.8109 region, hinting sellers are ready retake momentum. However, risk/reward considerations argue against entering short at present given the proximity of support at 0.7906, the 14.6% Fibonacci retracement level, and we will remain on the sidelines for now.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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