NZD/USD Technical Analysis: Short Trade Remains in Play
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy:Short at 0.7783
- Support: 0.7680, 0.7580, 0.7539
- Resistance:0.7815, 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 0.7815 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.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
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.