NZD/USD Technical Analysis –Waiting to Confirm a Top
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- NZD/USD Technical Strategy: Flat
- Support: 0.8607 (23.6% Fib ret.), 0.8500-13 (38.2% Fib ret., Oct 22 close)
- Resistance: 0.8745 (Apr 10 high), 0.8800
The New Zealand appears to be carving out a top against its US counterpart after prices completed a Bearish Engulfing candlestick pattern below resistance at 0.8745, the April 10 high. Initial support is at 0.8607, the 23.6% Fibonacci retracement, with a break below this barrier targeting the 0.8500-13 area marked by the 38.2% level and the October 22 close. Alternatively, a turn and daily close above 0.8745 aims for the 0.88 figure.
Risk/reward considerations argue against taking a position at current levels. We will continue to stand aside for now, waiting for the pair to yield a more actionable trading opportunity in the days ahead.
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.