NZD/USD Technical Analysis: Waiting to Confirm Reversal
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.7660, 0.7602, 0.7469
- Resistance:0.7854, 0.8051, 0.8138
The New Zealand Dollar may be preparing to move higher against its US namesake after putting in a Bullish Engulfing candlestick pattern. A daily close above channel top resistance at 0.7854 exposes the 0.8034-51 area marked by the October 21 high and the February 2014 bottom. Alternatively, a reversal below the 0.7660-82 area (channel floor, July 2013 low) opens the door for a test of the 38.2% Fibonacci expansion at 0.7602.
Entering long appears premature for now absent confirmation of recovery on a daily close above the channel top. On the other hand, the absence of a defined bearish signal and prices’ proximity to support argues against taking up the short side. We will remain on the sidelines for now.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com