NZD/USD Technical Analysis: A Bottom Set Below 0.81?
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- NZD/USD Technical Strategy: Flat
- Support: 0.8082, 0.8006, 0.7882
- Resistance:0.8187, 0.8255, 0.8366
The New Zealand Dollar is attempting to recover a foothold back above the 0.81 figure against its US counterpart. A daily close above the 14.6% Fibonacci retracement at 0.8187 exposes the 0.8236-55 area marked by a falling trend line set from early July and the 23.6% level. Alternatively, a reversal below the 61.8% Fib expansion at 0.8082 clears the way for a challenge of the 76.4% threshold at 0.8006.
Positive RSI divergence seems to hint at ebbing downward momentum, suggesting a bottom may be forming. A trade-able reversal requires confirmation on a break of trend line resistance however. With that in mind, we will remain flat for the time being.
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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.