NZD/USD Technical Analysis: Bottoming Still in Progress
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- NZD/USD Technical Strategy: Flat
- Support: 0.6443, 0.6261, 0.6114
- Resistance:0.6679, 0.6791, 0.6973
The New Zealand Dollar may be forming a double bottom against its US namesake, with prices trying to edge higher as expected having produced a Bullish Engulfing candlestick pattern. A daily close above the 14.6% Fibonacci retracementat 0.6679 exposes the 23.6% level at 0.6791. 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.
On balance, the overall NZD/USD trend seems to be bearish. As such, we will look at any oncoming move higher as corrective and treat it as an opportunity to establish a short position in line with the dominant longer-term trajectory. We remain flat for the time being.
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--- 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.