Forex: NZD/USD Technical Analysis – Possible Topping in the Works
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- NZD/USD Technical Strategy: Flat
- Support: 0.8452 (61.8% Fib exp.), 0.8412 (50% Fib exp.)
- Resistance: 0.8502 (76.4% Fib exp.), 0.8582 (100% Fib exp.)
The New Zealand Dollar may be carving out a top below the 0.85 figure against its US counterpart. A Shooting Star candlestick points to ebbing upside momentum below resistance at 0.8502, the 76.4% Fibonacci expansion. A break below near-term support at 0.8452, the 61.8% level, exposes the 50% Fib at 0.8412. Alternatively, a push above resistance targets the 100% expansion at 0.8582.
Prices are too close to relevant support to justify entering short on risk/reward grounds. Furthermore, a Shooting Star candle is a sign of indecision rather than outright reversal and confirmation is required for the setup to turn actionable. We will remain on the sidelines for the time being.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.