NZD/USD Technical Analysis: Upswing to Yield Short Trade
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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 continues to recover against its US counterpart after producing in a bullish Morning Star candlestick pattern. A daily close above the 38.2% Fibonacci retracement at 0.7448 exposes the 0.7501-32 area marked by channel floor support-turned-resistance and the 50% level. Alternatively, a move below the 23.6% Fib at 0.7344 clears the way for a test of the 14.6% retracement at 0.7280.
The current upswing appears corrective in the context of a larger NZDUSD down trend. With that in mind, we will stand aside for now, waiting for the move higher to be exhausted to enter short following the appearance of a defined bearish reversal signal.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com