NZD/USD Technical Analysis: Candle Pattern Hints at Gains
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- NZD/USD Technical Strategy: Flat
- Support: 0.7129, 0.7024, 0.6930
- Resistance:0.7151, 0.7194, 0.7299
The New Zealand Dollar rebounded against its US namesake as expected, with a Bullish Engulfing candlestick pattern now hinting at further gains ahead. A daily close above falling trend line resistance at 0.7151 exposes the 23.6% Fibonacci retracement at 0.7194. Alternatively, a reversal back below the 14.6% Fib at 0.7129 clears the way for a challenge of the June 5 low at 0.7024.
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 an 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.