NZD/USD Technical Analysis: Kiwi Recovery in the Cards?
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.8314, 0.8243, 0.8185
- Resistance:0.8401-34, 0.8511, 0.8548
The New Zealand Dollar may be preparing to bounce against its US counterpart following the formation of a bullish Morning Star candlestick pattern. Near-term resistance is in the 0.8401-34 area, marked by the 23.6% retracement and the June 4 low, with a break above that on a daily closing basis exposing the 38.2% level at 0.8511. Alternatively, a turn below the 23.6% Fib expansion at 0.8314 opens the door for a test of the 38.2% barrier at 0.8243.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. With that in mind we will remain flat for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.