Forex: NZD/USD Technical Analysis – Kiwi Reclaims 0.82 Figure
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.8196 (38.2% Fib ret.), 0.8141 (23.6% Fib ret.)
- Resistance: 0.8241 (50% Fib ret., trend line), 0.8286 (61.8% Fib ret.)
The New Zealand Dollar reversed sharply higher as we suspected after producing a dramatic-looking Doji candle. Breaking above resistance at 0.8241, the intersection of the 50% Fibonacci retracement and a falling trend line, exposes the 61.8% level at 0.8286. Alternatively, a reversal below support at 0.8196 – the 38.2% Fib – targets the 23.6% retracement at 0.8141.
On one hand, a long position at current levels seems unattractive from a tactical perspective. We’d prefer to first see confirmation of an upside trend reversal in the near-term on a daily close above the falling trend line. On the other, risk/reward considerations argue against taking on the short side with prices squarely at relevant support. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com