NZD/USD Technical Analysis: Struggling to Build Upward
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- NZD/USD Technical Strategy: Flat
- Support: 0.7808, 0.7682, 0.7542
- Resistance:0.7973, 0.8051, 0.8138
The New Zealand Dollar is trying to build upward as expected against its US counterpart after putting in a bullish Piercing Line candlestick pattern. A daily close above the 23.6% Fibonacci retracementat 0.7973 exposes the February 4 low at 0.8051. Alternatively, a reversal below the 14.6% Fibexpansion at 0.7808 opens the door for a test of the 0.7682-0.7707 area marked by the July 8 2013 low and the 23.6% threshold.
The dominant trend has appeared bearish since early July. With that in mind, we will opt not to pursue a long position and look to any upswing from here as an opportunity to establish short.
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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.