NZD/USD Technical Analysis: 2-Month Down Trend at Risk
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- NZD/USD Technical Strategy: Flat
- Support: 0.8131, 0.8064, 0.7997
- Resistance:0.8238, 0.8290, 0.8395
The New Zealand Dollar advanced against its US namesake as expected, with a bullish Morning Star now hinting at a bottom being formed. A daily close above the 0.8226-38 area marked by the 14.6% Fibonacci retracement and a falling trend line set from early July exposes the 23.6% level at 0.8290. Alternatively, a reversal below the 38.2% Fib expansion at 0.8131 clears the way for a challenge of the 50% threshold at 0.8064.
Risk/reward considerations argue against entering long with prices sitting too close to resistance. Furthermore, the down trend set from early July remains structurally intact, arguing that further confirmation is warranted before betting on an upswing. 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.