NZD/USD Technical Analysis: Trying to Carve Out a Bottom
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- NZD/USD Technical Strategy: Flat
- Support: 0.8330, 0.8283, 0.8206
- Resistance:0.8401-34, 0.8511, 0.8553-73
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 at 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 14.6% Fib expansion at 0.8330 opens the door for a test of the 23.6% barrier at 0.8283.
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.
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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.