NZD/USD Technical Analysis: Wedge Setup Hints at Bounce
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- NZD/USD Technical Strategy: Flat
- Support: 0.8255, 0.8206, 0.8144
- Resistance:0.8283, 0.8330, 0.8401
The New Zealand Dollar made another push downward against its US counterpart but a falling wedge chart formation hints a reversal may be ahead. A daily close below wedge support at 0.8255 exposes the 38.2% Fibonacci expansionat 0.8206. Alternatively, a turn above the 23.6% level at 0.8283 clears the way for a challenge of 0.8330, the intersection of the wedge top and the 14.6% Fib.
Risk/reward considerations argue against entering short with prices sitting at support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long 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.