NZDUSD: Key Trend Line Triggers Reversal
NZDUSD is edging lower after putting in a Bearish Engulfing candlestick pattern below critical falling trend line resistance capping gains over the past 12 months. Initial support is in the 0.8058-92 area, with a break below that exposing trend line resistance-turned-support now at 0.7969. Resistance is now at 0.8185, with a breach above that initially targeting the 0.82 figure and 0.8262. Risk/reward considerations argue against entering short with prices so close to support and we will stand aside for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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