NZD/USD Technical Analysis: Progress Made on Short Trade
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- NZD/USD Technical Strategy:Short at 0.7783
- Support: 0.7680, 0.7580, 0.7543
- Resistance:0.7824, 0.7897, 0.8076
The New Zealand Dollar began to decline against its US namesake as expected after prices produced a bearish Evening Star candlestick pattern. A daily close below the December 18 lowat 0.7680 exposes the 23.6% Fibonacci expansion at 0.7580. Alternatively, a move above channel top resistance at 0.7824 opens the door for a challenge of the 23.6% Fib retracement at 0.7897.
We entered short NZDUSD at 0.7783, initially targeting 0.7680. A stop-loss has been set to trigger on a daily close above the January 12 high at 0.7864. We will book half of the position and trail the stop-loss to the breakeven level once prices reach the first objective.
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Daily Chart - Created Using FXCM Marketscope
--- 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.