NZD/USD Technical Analysis: Waiting to Re-Establish Short
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- NZD/USD Technical Strategy:Flat
- Support: 0.7344, 0.7280, 0.7175
- Resistance:0.7448, 0.7532, 0.7616
The New Zealand Dollar is attempting to build higher against its US counterpart after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7448, the 38.2% Fibonacci retracement, with a break above that on a daily closing basis exposing the 0.7504-32 area marked by channel floor support-turned-resistance and the 50% level. Alternatively, a turn below the 23.6% Fib at 0.7344 opens the door for a challenge of the 14.6% retracement at 0.7280.
We see the dominant NZDUSD trend as favoring the downside. With that in mind, we will look to any on-coming gains as an opportunity to enter short at a more attractive level rather than as a stand-alone long trade setup. In the meantime, we remain flat.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com