NZD/USD Technical Analysis: Three-Week Uptrend at Risk
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- NZD/USD Technical Strategy: Flat
- Support: 0.7492, 0.7429, 0.7366
- Resistance:0.7570, 0.7638, 0.7696
The New Zealand Dollar is edging lower as expected after putting in a bearish Evening Star candlestick pattern. Near-term support is at 0.7492, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 0.7429.Alternatively, a reversal above the 23.6% Fib at 0.7570 opens the door for a test of falling trend line resistance at 0.7638.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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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.