NZD/USD Technical Analysis – Half of Short Trade Booked
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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.), 0.8527 (former support), 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. Support is now seen in the 0.8391-0.8415 area, marked by a horizontal barrier in play since September 2013 and the 50% Fibonacci retracement. Breaking below that exposes the 61.8% level at 0.8329. Alternatively, a turn back above the 0.8500 figure targets former support at 0.8527, followed by the 23.6% Fib at 0.8607.
We sold NZDUSD at 0.8493. Profit on half of the position has now been booked at 0.8415 – the first objective – and the stop-loss on the remainder of the position trailed to the breakeven level (0.8493). We will let the trade develop from here, expecting the overall down move to continue in the days and weeks ahead.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com