NZD/USD Technical Analysis – Short Position Nears Target
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- NZD/USD Technical Strategy: Short at 0.8493
- Support: 0.8391-0.8415 (horizontal pivot, 50% Fib exp.), 0.8329 (61.8% Fib exp.)
- Resistance:0.8500 (38.2% Fib ret.), 0.8516-27 (former support, trend line), 0.8607 (23.6% Fib ret.)
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 turn back above the 0.8500 figure targets the intersection of horizontal support-turned-resistance and a falling trend line in the 0.8516-27 area, followed by the 23.6% Fib at 0.8607.
We entered short NZDUSD at 0.8493, initially targeting 0.8415. A stop-loss is set to trigger 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.