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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.8500-13 (38.2% Fib ret., Oct 22 close), 0.8415 (50% Fib ret.)
- Resistance:0.8556 (trend line), 0.8607 (23.6% Fib ret.
The New Zealand Dollar turned lower as expected against its US namesake after putting in a Bearish Engulfing candlestick pattern. Sellers are aiming for support in the 0.8500-13 area, marked by the 38.2% Fibonacci retracement and the October 22 close. A daily close below that exposes the 50% level at 0.8415. Rising trend line support-turned-resistance comes in at 0.8557, with a reversal back above that targeting the 23.6% Fib at 0.8607.
The 0.85 figure has acted as formidable horizontal support over the past two months and we will opt to wait for that level to be broken as a signal of downside conviction before entering short. In the meantime, we remain flat.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
