Strategy: Pending Short
NZDUSD put in a bullish Inverted Hammer candlestick above support at 0.7391, the 61.8% Fibonacci extension, with prices bouncing to meet resistance at 0.7554 marked by the 50% Fib level. The upside barrier is reinforced by the top of a falling channel set from late October. We will look for signs of reversal here to identify a selling opportunity. Alternatively, a break higher exposes the 38.2% extension at 0.7716.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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