NZDUSD: False Breakout on Trend Line Breach?
Strategy: Pending Short
NZDUSD narrowly broke below major rising trend line support set from mid-May 2010 but a Piercing Line candlestick pattern coupled with positive RSI divergence in highly oversold territory warns that a pull-up may materialize before further selling. We will stand aside for now and let the move higher materialize to look for selling opportunities. Initial resistance lines up at 0.7660, the 23.6% Fibonacci retracement.
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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