Forex: NZD/USD Technical Analysis – Waiting to Confirm a Top
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- NZD/USD Technical Strategy: Flat
- Support: 0.8474-87 (23.6% Fib ret., trend line), 0.8393 (38.2% Fib ret.)
- Resistance: 0.8582 (100% Fib exp.), 0.8663 (123.6% Fib exp.)
A Shooting Star hints the New Zealand Dollar may be in the process of carving out a top against its US counterpart. Initial support is in the 0.8474-87 area, marked by the 23.6% Fibonacci retracement and a rising trend line set from early February. A break below that initially exposes the 38.2% level at 0.8393. Near-term resistance is at 0.8582, the 100% Fib expansion.
Taken in isolation, a Shooting Star candle represents indecision rather than a defined reversal signal. While the implied loss of bullish conviction may precede a reversal, confirmation is needed before the setup becomes actionable. With that in mind, we will remain continue to monitor positioning from 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.