NZD/USD Technical Analysis: Short Trade Triggered Sub-0.80
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- NZD/USD Technical Strategy: Short at 0.7909
- Support: 0.7802, 0.7682, 0.7525
- Resistance:0.7937, 0.8034, 0.8109
The New Zealand Dollar may have resumed the down trend against its US namesake after prices violated the series of higher highs and higher lows set from early November. A daily close below the 14.6% Fibonacci expansion at 0.7802 exposes the 0.7682-96 area marked by the July 2013 bottom and the 23.6% level. Alternatively, a turn above the 23.6% Fib retracement at 0.7937 opens the door for a test of the October 21 high at 0.8034.
A shallow pull-up from last week’s lows has made for an improvement in risk/reward parameters and we will now enter short, initially targeting 0.7802. A stop-loss will be activated on a daily close above 0.7974. We will take profit on half of the position and move the stop-loss to breakeven once the first objective is met.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com