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NZD/USD Technical Analysis: Is a Double Bottom Set at 0.84?

NZD/USD Technical Analysis: Is a Double Bottom Set at 0.84?

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8470, 0.8401, 0.8350
  • Resistance:0.8509, 0.8571, 0.8621

The New Zealand Dollar edged higher against its US counterpart after putting in a bullish Piercing Line candlestick pattern, hinting a double bottom may be forming. Initial resistance is at 0.8509, the intersection of a previously broken rising trend line (set from August 2013) and the 23.6% Fibonacci retracement. A break above that on a daily closing basis exposes the 38.2% level at 0.8571. Alternatively, a turn below the 14.6% Fib at 0.8470 opens the door for a test of the June 4 low at 0.8401.

Prices are wedged too closely between near-term support and resistance to justify taking a trade from a risk/reward perspective. We will stand aside for the time being, waiting for a more attractive setup to present itself.

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NZD/USD Technical Analysis: Is a Double Bottom Set at 0.84?

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.

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