NZD/USD Candlestick Analysis: Rally Extends for Third Week
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NZD/USD Strategy: Flat
Kiwi Rebound Extends for Third Week
Upswing to Yield Selling Opportunity
The New Zealand Dollar continued higher for a third consecutive week against its US counterpart having bottomed after setting a bullish Morning Star candlestick pattern. Resistance is now at 0.7567, the intersection of channel resistance-turned-support and the 23.6% Fibonacci retracement, with a break above that exposing the 38.2% Fib at 0.7809. Alternatively, a reversal back below 0.7418 targets the January low at 0.7175.
The overall NZD/USD trend continues to favor the downside. With that in mind, we will look to any on-coming gains as an opportunity to establish a short position at more attractive levels once the upswing is exhausted.
Weekly Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com