NZD/USD Technical Analysis: Kiwi Breaks Losing Streak
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- NZD/USD Technical Strategy: Flat
- Support: 0.7406, 0.7332, 0.7246
- Resistance:0.7524, 0.7590, 0.7627
The New Zealand Dollar launched a recovery against the US Dollar after reversing downward as expected following the appearance of an Evening Star candlestick pattern. A daily close above the 23.6% Fibonacci expansion at 0.7524 exposes the 14.6% level at 0.7590. Alternatively, a move below the 0.7406-18 area (horizontal pivot, 38.2% Fib)clears the way for a challenge of the 50% expansion at 0.7332.
Risk/reward considerations argue against entering long with prices in close proximity to resistance. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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