NZDUSD: Buyers Challenge Key Trend Line
Prices rebounded after putting in an Inverted Hammer candlestick above support at 0.8193 to retest resistance at a falling trend line set from late-August 2011, now at 0.8343. A break above this barrier exposes the top of a rising channel established from the May 2012 lows at 0.8445. Alternatively, a reversal through support targets 0.8047, a horizontal barrier reinforced by the channel bottom. 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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