NZD/USD Technical Analysis: Short Trade Setup Established
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- NZD/USD Technical Strategy: Pending Short at 0.7529
- Support: 0.7444, 0.7340, 0.7256
- Resistance:0.7538, 0.7608, 0.7680
The New Zealand Dollar looks to have resumed the down trend against its US namesake after breaking the rising channel established from late January. A break below the 23.6% Fibonacci expansion at 0.7444 exposes the 38.2% level at 0.7340. Alternatively, a reversal above channel floor support-turned-resistance at 0.7538 clears the way for a test of the December 9 low at 0.7608.
Risk/reward considerations argue against entering short with prices in close proximity to support. With that in mind, we will set a pending order to sell the pair at 0.7529. If triggered, the trade will initially target 0.7444 and carry a stop-loss activated on a daily close above 0.7613.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.