NZD/USD Technical Analysis: Kiwi Short Position Triggered
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- NZD/USD Technical Strategy: Short at 0.7513
- Support: 0.7406, 0.7332, 0.7246
- Resistance:0.7547, 0.7608, 0.7696
The New Zealand Dollar corrected higher against its US namesake after seemingly overturning the up move from the March swing low yesterday. A daily close below the 0.7406-18 area (horizontal pivot, 38.2% Fibonacci expansion) exposes the 50% level at 0.7332. Alternatively, a reversal above trend line support-turned-resistance at 0.7547 clears the way for a challenge of 0.7608 (December 9 low, falling trend line).
The corrective rebound has improved risk/reward parameters and we will now enter short, initially targeting 0.7418. A stop-loss will be activated on a daily close above 0.7608. We will book profit on half of the position and move the stop-loss to breakeven (0.7513) once the first objective is reached.
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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.