NZD/USD Technical Analysis: Sellers Target June Bottom
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- NZD/USD Technical Strategy: Flat
- Support: 0.8433, 0.8396-401, 0.8336
- Resistance:0.8469, 0.8494, 0.8524
The New Zealand Dollar dropped to the lowest level in over two months against its US namesake, taking out trend support set from late August 2013. A daily close below support at 0.8433, the 14.6%Fibonacci expansion, exposes the 0.8396-0.8401 area marked by the June 4 low and the 23.6% level.Alternatively, a reversal above trend line support-turn-resistance at 0.8469 opens the door for a test of the August 7 high at 0.8494.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. With that in mind we will remain flat for now.
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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.