NZD/USD Technical Analysis: Kiwi Rebound Hinted Ahead
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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 readying to turn higher anew against its US counterpart after prices completed a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.7937, the 23.6% Fibonacci retracement, with a break above that on a daily closing basis exposingthe October 21 high at 0.8034.Alternatively, a reversal below the14.6% Fib expansionat 0.7802clears the way for a challenge of the 0.7682-96 area marked by the July 2013 bottom and the 23.6% threshold.
We entered short NZDUSD at 0.7909 and subsequently booked profits on half of the position. The remainder of the trade remains open to capture any further downward momentum with a stop-loss trailed to breakeven (0.7909).
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com