NZD/USD Technical Analysis: Kiwi Bounce May Be 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 be carving out a bottom against its US namesake after prices produced a bullish Piercing Line candlestick pattern. Near-term resistance is at 0.7838, the 100% Fibonacci expansion, with a break above that on a daily closing basis exposing the 76.4% level at 0.7930. Alternatively, a turn below the 123.6% Fibat 0.7745 opens the door for a test of the 0.7688-97 area marked by the July 2013 bottom and the 138.2% expansion.
On balance, the dominant trend has favored the downside since early July. With that in mind, we will to wait for any on-coming gains and treat them as a selling opportunity rather than a trade-able bullish opportunity.
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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.