Forex: NZD/USD Technical Analysis – Turn Lower in the Works?
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- NZD/USD Technical Strategy: Flat
- Support: 0.8639 (23.6% Fib exp.), 0.8596 (trend line)
- Resistance: 0.8675 (Apr’13 high), 0.8725 (38.2% Fib exp.)
New Zealand Dollar may be preparing to turn lower against its US namesake after prices produced a Shooting Star candlestick pattern below the April 2013 high (0.8675). Negative RSI divergence seems to reinforce the possibility of a reversal. Initial support is at 0.8639, the 23.6% Fibonacci expansion, with a daily close below that exposing a rising trend line set from early February at 0.8596. Alternatively, a push above 0.8675 initially targets the 38.2% Fib at 0.8725.
A Shooting Star candle represents indecision and is not an actionable short trade signal in its own right absent confirmation. With that in mind, we will continue to stand aside for now until prices offer greater directional clarity.
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.