NZD/USD Technical Analysis: Kiwi Moves to 3-Week High
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- NZD/USD Technical Strategy: Flat
- Support: 0.7905, 0.7817, 0.7707
- Resistance:0.8013, 0.8051, 0.8138
The New Zealand Dollar advanced as expected against its US namesake after prices forming a bullish Piercing Line candlestick pattern. Near-term resistance is in the 0.7973-0.8013 area, marked by a rising channel top and the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the February 4 low at 0.8051. Alternatively, a turn below resistance-turned-support at 0.7905 clears the way for a challenge of the channel floor at 0.7817.
On balance, the dominant trend has favored the downside since early July. With that in mind, we will to wait for the upswing to be exhausted and treat it as a selling opportunity rather than a trade-able bullish setup.
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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.