NZD/USD Technical Analysis: Double Bottom in the Works?
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- NZD/USD Technical Strategy: Flat
- Support: 0.6443, 0.6261, 0.6114
- Resistance:0.6556, 0.6679, 0.6791
The New Zealand Dollar may be forming a double bottom against its US namesake after prices produced a Bullish Engulfing candlestick pattern. A daily close above the 14.6% Fibonacci expansion at 0.6556 exposes the 14.6% Fib retracement at 0.6679. Alternatively, a move below the 0.6443-97 area (23.6% expansion, July 16 low) clears the way for a challenge of the 38.2% level at 0.6261.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on a long or short side from a risk/reward perspective. With that in mind, we will continue to stand aside until a more attractive opportunity presents itself.
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--- Written by Ilya Spivak, Currency Strategist for DailyFX.com