NZD/USD Candlestick Analysis: Waiting for Short Trade Setup
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NZD/USD Strategy: Flat
July 2013 Bottom Now Resistance
Upswing to Yield Short Trade Setup
The New Zealand Dollar continues to grind higher against its US counterpart after putting in a bullish Morning Star candlestick pattern. A break of support-turned-resistance at 0.7682, the June 2013 low, exposes the 38.2% Fibonacci retracement at 0.7801. Alternatively, a move back below the December 2014 bottom at 0.7608 targets the 14.6% Fib expansion at 0.7495.
The overall NZD/USD trend continues to favor the downside. With that in mind, we will treat recent gains as corrective and approach them as an opportunity to enter short once the upswing is exhausted.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com