NZDUSD: Wedge Setup Hints Downturn Ahead
Strategy: Pending Short
Prices appear to be carving out a bearish Rising Wedge chart formation. A Shooting Star candlestick following a test of major falling trend line set from the August 2011 swing high hints a move lower is ahead. Initial support lines up at 0.8039, the 23.6% Fibonacci retracement. A break below this boundary on a daily closing basis confirms the Wedge setup and opens the door for a larger reversal, initially exposing the 38.2% Fib at 0.7837. Trend line resistance is now at 0.8159. We will stand side for now, waiting for confirmation to enter short.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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