NZD/USD Technical Analysis – Short Trade Triggered Sub-0.85
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- NZD/USD Technical Strategy: Short at 0.8493
- Support: 0.8391-0.8415 (horizontal pivot, 50% Fib exp.)
- Resistance:0.8500 (38.2% Fib ret.), 0.8527 (former support), 0.8562 (trend line)
The New Zealand Dollar turned lower expected against its US namesake after putting in a Bearish Engulfing candlestick pattern. A close below the 0.85 figure has exposed the 0.8391-0.8415 area, marked by a horizontal barrier in play since September 2013 and the 50% Fibonacci retracement. Alternatively, a reversal back above 0.8500 clears the way for a test of support-turned-resistance at 0.8527, followed by a falling trend line at 0.8562.
We will now try to enter short, aiming for 0.8415 as an initial objective. A stop-loss will be activated on a daily close above 0.8565. We will take profit on half of the position and trail the stop-loss to the breakeven level once the first target is hit.
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.