NZD/USD Technical Analysis: Support Above 0.78 in Focus
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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 be resuming the down trend against its US counterpart having seemingly overturned the bounce from November lows. Near-term support is at 0.7802, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 0.7682-96 area marked by the July 2013 bottom and the 23.6% Fib expansion. Alternatively, a reversal above the 23.6% retracement at 0.7937 clears the way for a challenge of the October 21 high at 0.8034.
We entered short NZDUSD at 0.7909, initially targeting 0.7802. A stop-loss will be triggered on a daily close above 0.7974. We will book half of the position and move the stop-loss to breakeven once the first objective is reached.
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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.