NZD/USD Technical Analysis: Bottom Forming Above 0.83?
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- NZD/USD Technical Strategy: Flat
- Support: 0.8314, 0.8243, 0.8185
- Resistance:0.8373, 0.8401-34, 0.8511
The New Zealand Dollar may be carving out a bottom against its US namesake after putting in a bullish Morning Star candlestick pattern. A daily close above falling trend line resistance at 0.8373 exposes the 0.8401-34 area marked by the 23.6% retracement and the June 4 low. Alternatively, a reversal below the 23.6% Fib expansion at 0.8314 clears the way for a challenge of the 38.2% threshold at 0.8243.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short side is premature. 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.