NZD/USD Technical Analysis: Selloff Extends for Fifth Day
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- NZD/USD Technical Strategy:Short at 0.7783
- Support: 0.7420, 0.7275, 0.7130
- Resistance:0.7529, 0.7599, 0.7680
The New Zealand Dollar fell against its US namesake as expected, with prices now hitting levels unseen since May 2012. A daily close below the 38.2% Fibonacci expansion at 0.7420 exposes the 38.2% level at 0.7275. Alternatively, a move above channel floor support-turned-resistance at 0.7529 opens the door for a challenge of the 23.6% Fib at 0.7599.
We entered short NZDUSD at 0.7783 and have subsequently booked profits on half of the position. The remainder of the position remains open to capture continued downside momentum. The stop-loss is now at the breakeven level (0.7783).
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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.