NZD/USD Technical Analysis: Candle Pattern Hints at Losses
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- NZD/USD Technical Strategy: Flat
- Support: 0.7570, 0.7492, 0.7429
- Resistance:0.7665, 0.7756, 0.7847
The New Zealand Dollar put in a bearish Evening Star candlestick pattern, hinting a move lower against its US namesake may be ahead. A daily close below the 23.6% Fibonacci retracement at 0.7570 exposes the 38.2% level at 0.7492.Alternatively, a turn above 0.7665 (trend line, 76.4% Fib expansion) clears the way for a challenge of the 100% threshold at 0.7756.
Risk/reward considerations argue against entering short with prices in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. We will remain flat for now, waiting for a more actionable opportunity to present itself.
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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.