NZD/USD Technical Analysis: Working on Breach of 0.72
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- NZD/USD Technical Strategy:Short at 0.7783
- Support: 0.7225, 0.7164, 0.7065
- Resistance:0.7323, 0.7370, 0.7454
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 0.7225, the 14.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 23.6% level at 0.7164. Alternatively, a turn back above the February 2 high at 0.7323 clears the way for a test of support-turned-resistance at 0.7370, the November 25 2011 low.
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