Forex: NZD/USD Technical Analysis – Reversal Hinted Below 0.84
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.8254 (23.6% Fib exp.)
- Resistance: 0.8380 (trend line, 38.2% Fib exp.), 0.8481 (50% Fib exp.)
The New Zealand Dollar may be readying to turn lower against its US namesake after prices put in a Shooting Star candlestick below resistance at 0.8380, the intersection of a falling trend line set from mid-October and the 38.2% Fibonacci expansion. Near-term support is at 0.8254, the 23.6% Fib. Alternatively, a turn above resistance initially exposes the 50% level at 0.8481.
Confirmation of a reversal is pending for now and we will wait for that to materialize before looking for a short trade setup. Needless to say, current positioning offers little evidence to argue in favor of a long trade setup. We will continue to 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