NZD/USD Technical Analysis: Kiwi Drops to 4-Year Low
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- NZD/USD Technical Strategy:Short at 0.7783
- Support: 0.7130, 0.6951, 0.6661
- Resistance:0.7275, 0.7420, 0.7517
The New Zealand Dollar declined as expected against its US counterpart after putting in a bearish Evening Star candlestick pattern. Near-term support is at 0.7130, the 61.8% Fibonacci expansion, with a break below that on a daily closing basis exposing the 76.4% level at 0.6951. Alternatively, a turn back above the 50% Fib at 0.7275 clears the way for a test of the 38.2% Fib at 0.7420.
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).
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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.