NZD/USD Technical Analysis: Candle Pattern Hints at Bounce
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- NZD/USD Technical Strategy: Flat
- Support: 0.8350, 0.8300, 0.8249
- Resistance:0.8401-13, 0.8462, 0.8533
The New Zealand Dollar may be readying to correct higher against its US counterpart after prices put in a bullish Piercing Line candlestick pattern. A daily close above the 0.8401-13 area, marked by the 23.6% Fibonacci expansion and the June 4 low, exposes the 23.6% Fib retracement at 0.8462. Alternatively, a reversal below the 38.2% expansion at 0.8350 clears the way for a challenge of the 50% threshold at 0.8300.
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.