Price & Time: Looking For A Range Low In NZD/USD Next Week
- Turn window ahead in NZD/USD
- Important support levels near .8400
Unfamiliar with Gann Square Root Relationships? Learn more about them HERE.
NZD/USD has been under steady pressure since peaking out at the beginning of the month near important Gann resistance at .8770 (8th square root relationship of the year-to-date low). On Wednesday the exchange rate finally closed below the late April .8515 low triggering a double top type pattern on the daily charts. According to classic technical analysis this is the time to sell. Cyclical analysis paints a different picture, however, as the next few days look quite important for the exchange rate from a timing perspective. From where we stand the rate actually looks quite vulnerable to a short-term reversal which at a minimum should give better levels to sell next month if not prompt a full on resumption higher. New trend lows in the Kiw after early next week would nullify this near-term positive outlook.
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NZD/USD Chart: May 29, 2014
Charts Created using Marketscope – Prepared by Kristian Kerr
Key Event Risk Early Next Week:
LEVELS TO WATCH
Resistance: .8505 (Gann), .8560 (Gann)
Support: .8415 (Fibonacci), .8470 (Gann)
Strategy: Buy NZD/USD Next Week
Entry: Buy NZD/USD next week at .8415
Stop: 1-day close below .8370
--- Written by Kristian Kerr, Senior Currency Strategist for DailyFX.com
To contact Kristian, e-mail email@example.com. Follow me on Twitter at@KKerrFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.