NZD/USD Technical Analysis – Focus Remain on 0.85 Figure
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.8500-13 (38.2% Fib ret., Oct 22 close), 0.8415 (50% Fib ret.)
- Resistance:0.8562 (trend line), 0.8607 (23.6% Fib ret.
The New Zealand Dollar declined against its US counterpart as expected after prices formed a Bearish Engulfing candlestick pattern. A break below rising trend line set from late March has exposed the 0.8500-13 area, marked by the 38.2% Fibonacci retracement and the October 22 close. A further push below that aims for the 50% level at 0.8415. The trend line – now at 0.8562 – has been recast as resistance, with a turn back above that eyeing 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.
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.