NZDUSD: Bulls Challenge the 0.82 Figure
Strategy: Pending Short
NZDUSD put in a Bullish Engulfing candlestick above support at the 0.78 figure and bounced higher, meeting resistance at the 123.6% Fibonacci extension of the drop from the November 2010 high at 0.8179. Overall positioning appears to favor the downside, with prices showing the outlines of a bearish Rising Wedge chart formation coupled with negative RSI divergence. With that in mind, there is nothing to indicate a reversal is imminent and we will remain on the sidelines for the time being. A break beyond immediate resistance targets 0.8306, the 138.2% extension level.
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