NZD/USD Technical Analysis – Looking to Re-Enter Short
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- NZD/USD Technical Strategy: Flat
- 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 fell as expected against its US namesake after putting in a Bearish Engulfing candlestick pattern. A bounce from support in the 0.8391-0.8415 area, marked by a horizontal pivot in play since September and the 50% Fibonacci retracement, has opened the door for a test of the 0.85 figure. This is reinforced by support-turned-resistance at 0.8527. A daily close above the latter level exposes the 23.6% level at 0.8607. Alternatively, a reversal below support on a daily closing basis eyes the 61.8% Fib at 0.8329.
We entered short NZDUSD at 0.8493. We subsequently booked profit on half of the position at the first target and left the remainder with an updated stop-loss at the breakeven level, which has now been triggered. The overall trend continues to look bearish and we will look for new selling opportunities in the days ahead.
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.