NZD/USD Technical Analysis: Half of Short Trade Booked
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- NZD/USD Technical Strategy: Short at 0.7783
- Support: 0.7527, 0.7420, 0.7275
- Resistance:0.7599, 0.7680, 0.7812
The New Zealand Dollar declined as expected against its US counterpart, with prices sliding to the lowest level in nearly three years. Near-term channel floor support is at 0.7527, with a break below that on a daily closing basis exposing the 38.2% Fibonacci expansion at 0.7420. Alternatively, a reversal above the 23.6% level at 0.7599 clears the way for a challenge of range floor support-turned-resistance at 0.7680.
We sold NZDUSD at 0.7783 and have subsequently booked profits on half of the position. The rest of the trade remains open to capture any further downside momentum. The stop-loss has been revised to the breakeven level (0.7783).
NOTE: FXCM Inc, Parent Company of DailyFX, will raise margin requirements given volatility risk
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.