Strategy: Pending Short
NZDUSD put in a Bearish Engulfing candlestick pattern below resistance at 0.7820, the 38% Fibonacci retracement, a reversal lower may be ahead. Negative RSI divergence reinforces the case for a downward scenario. Risk/reward considerations argue against entering short here however with prices so close to support at 0.7690, the 50% Fib, and we remain on the sidelines for now.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
To contact Ilya, e-mail ispivak@dailyfx.com. Follow me on Twitter at @IlyaSpivak
To be added to Ilya's e-mail distribution list, send a note with subject line "Distribution List" to ispivak@dailyfx.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
