NZD/USD Technical Analysis: Pausing to Digest Advance
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- NZD/USD Technical Strategy:Flat
- Support: 0.7532, 0.7448, 0.7344
- Resistance:0.7616, 0.7721, 0.7825
The New Zealand Dollar paused to digest gains against its US namesake having bottomed after putting in a bullish Morning Star candlestick pattern. Near-term resistance is at 0.7616, the 61.8% Fibonacci retracement, with a break above that on a daily closing basis exposing the 0.7680-7721 area marked by a formerly broken range support and the 76.4% Fib. Alternatively, a reversal back below the 50% Fib at 0.7532 opens the door for a challenge of the 38.2% retracement at 0.7448.
The longer-term NZDUSD trend continues to look bearish, suggesting that recent gains as well as any on-coming near-term gains are corrective. With that in mind, we will stand on the sidelines for now and wait for the move to run its course before entering short once a defined bearish signal emerges.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com