Forex: NZD/USD Technical Analysis – Upside Breakout at Hand?
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- NZD/USD Technical Strategy: Pending Long
- Support: 0.8301 (23.6% Fib exp.), 0.8246 (38.2% Fib exp.)
- Resistance: 0.8336 (14.6% Fib exp.), 0.8382 (trend line, horizontal pivot)
The New Zealand Dollar may be on the verse of a major breakout against its US counterpart. Prices are testing above resistance at 0.8380, the intersection of a falling trend line set from mid-October and the 38.2% Fibonacci expansion. A daily close above this barrier initially exposes the 50% level at 0.8481. Near-term support is at 0.8254, the 23.6% Fib.
Confirmation of a breakout is pending for now and we will wait for that to materialize before looking for a long trade setup. Needless to say, pursing a short position that assumes resistance will necessarily hold is premature at this point. We will monitor price action from the sidelines for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com