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Forex: NZD/USD Technical Analysis – Downturn Confirmation Pending

By , Currency Strategist
03 March 2014 21:36 GMT

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8254 (23.6% Fib exp.)
  • Resistance: 0.8380 (trend line, 38.2% Fib exp.), 0.8481 (50% Fib exp.)

The New Zealand Dollar may on the verge of a bearish reversal against its US namesake after producing a Shooting Star candlestick below resistance at 0.8380, marked by a falling trend line set from mid-October and the 38.2% Fibonacci expansion. Initial support is at 0.8254, the 23.6% Fib. Alternatively, an upward through resistance exposes the 50% level at 0.8481.

Confirmation of a downturn is pending for now and we will wait for that to materialize before looking for a short trade setup. On the other hand, current positioning offers little evidence to argue in favor of a long trade setup. We will continue to monitor price action from the sidelines for now.

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dailyclassics_nzd-usd_body_Picture_11.png, Forex: NZD/USD Technical Analysis – Downturn Confirmation Pending

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

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03 March 2014 21:36 GMT