NZD/USD Technical Analysis: Rebound Hinted Ahead
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- NZD/USD Technical Strategy: Flat
- Support: 0.7745, 0.7688, 0.7642
- Resistance:0.7838, 0.7987, 0.8033
The New Zealand Dollar may launch a recovery against its US counterpart after putting in a bullish Piercing Line candlestick pattern. A daily close above the 100% Fibonacci expansion at 0.7838 exposes the 76.4% level at 0.7930. Alternatively, a push through support at 0.7745, the 123.6% Fib, clears the way for a challenge of the 0.7688-97 area marked by the July 2013 bottom and the 138.2% expansion.
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.