NZD/USD Technical Analysis: Kiwi Rebound May Be Ahead
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- NZD/USD Technical Strategy: Flat
- Support: 0.8206, 0.8144, 0.8082
- Resistance:0.8283, 0.8330, 0.8401
The New Zealand Dollar may be readying to launch a rebound against its US namesake as prices carve out a falling wedge chart formation. Near-term resistance is at 0.8283, the intersection of the wedge top and the 23.6% Fibonacci expansion, with a break above that on a daily closing basis exposing the 14.6% level at 0.8330. Alternatively, a reversal below 0.8206, marked by the 38.2% Fib and reinforced by the wedge floor, opens the door for a test of the 50% expansion at 0.8144
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.