NZD/USD Technical Analysis: Channel Resistance Holding
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- NZD/USD Technical Strategy:Short at 0.7783
- Support: 0.7680, 0.7580, 0.7536
- Resistance:0.7820, 0.7897, 0.8076
The New Zealand Dollar fell as expected against its US counterpart after putting in a bearish Evening Star candlestick pattern. Near-term support is at 0.7680, the December 18 low, with a break below that on a daily closing basis exposing the 23.6% level at 0.7580. Alternatively, a break above channel top resistance at 0.7820 clears the way for a challenge of the 23.6% Fib retracement at 0.7897.
We sold NZDUSD at 0.7783, initially targeting 0.7680. A stop-loss will be activated on a daily close above the January 12 high at 0.7864. We will take profit on 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
--- 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.