NZD/USD Technical Analysis: Short Trade Remains in Play
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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 fell against its US namesake as expected, with sellers now eyeing support below the 0.73 figure. A daily close below the 61.8% Fibonacci expansion at 0.7130 exposes the 76.4% level at 0.6951. Alternatively, a move above the 50% Fib at 0.7275 opens the door for a challenge of the 38.2% expansion at 0.7420.
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