NZD/USD Technical Analysis – Rebound Cut Short at 0.85
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- NZD/USD Technical Strategy: Flat
- Support: 0.8391-0.8415 (horizontal pivot, 50% Fib ret.), 0.8329 (61.8% Fib ret.)
- Resistance:0.8500-23 (38.2% Fib ret., neckline), 0.8607 (23.6% Fib ret.)
The New Zealand Dollar declined as expected against its US counterpart having put in a Bearish Engulfing candlestick pattern. A corrective bounce is now finding resistance in the 0.8500-23 area, marked by the 38.2% Fibonacci retracement and neckline dating back to mid-March. A daily close above this barrier exposes the 23.6% level at 0.8607. Support is in the 0.8391-0.8415 region, bracketed by the 50% Fib and a horizontal pivot barrier. Reversing below that targets the 61.8% retracement at 0.8329.
Back-to-back indecision candles at resistance hint a move lower may be ahead, but confirmation of reversal needed to justify a short position remains absent. We will remain flat for now until a more actionable setup presents itself.
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.