NZD/USD Technical Analysis: Down Trend Under Pressure
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- NZD/USD Technical Strategy: Flat
- Support: 0.7073, 0.7008, 0.6903
- Resistance:0.7130, 0.7194, 0.7299
The New Zealand Dollar turned higher as expected against its US counterpart, forming a Bullish Engulfing candlestick pattern to hint at further gains ahead. Near-term falling trend line resistance is at 0.7130, with a break below that on a daily closing basis exposing the 23.6% Fibonacci retracement at 0.7194. Alternatively, a move below the 14.6% Fib expansion at 0.7073 opens the door for a test of the 23.6% threshold at 0.7008.
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.