NZDUSD: Rising Wedge Bottom Gives Way
Strategy: Pending Short
Prices are testing support at 0.7983, the 23.6% Fibonacci expansion. A break lower initially exposes the 38.2% level at 0.7834. Near-term resistance lines up at the bottom of a recently broken Rising Wedge formation bottom, now at 0.8070. A punch above that targets long-standing falling trend line resistance set from the August 1 high (0.8149). Current positioning doesn’t offer an attractive entry point from a risk/reward perspective 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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