Forex Analysis: NZDUSD Aims Higher at Channel Support
Prices put in a Bullish Engulfing candlestick pattern above support the bottom of a rising channel set from late May (0.8132), a barrier reinforced by the lower boundary of a smaller falling channel established from the September 14 swing high (0.8106). The setup hints a move higher is ahead. Initial resistance is at 0.8247, with a break above that exposing a long-term trend line now at 0.8328. Risk/reward considerations argue against entering a trade at current levels with the pair so close to resistance and we will stand side for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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