NZD/USD Technical Analysis: Trying to Clear Path Sub-0.74
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- NZD/USD Technical Strategy: Flat
- Support: 0.7447, 0.7380, 0.7294
- Resistance:0.7572, 0.7637, 0.7696
The New Zealand Dollar turned downward against its US counterpart as expected after forming a bearish Three Inside Down candlestick pattern. Near-term support is in the 0.7447-65 area (April 1 close, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing the 50% level at 0.7380. Alternatively, a reversal above the 23.6% Fib at 0.7572 opens the door for a test of the 14.6% expansion at 0.7637.
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.