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:0.6679, 0.6791, 0.6973
The New Zealand Dollar may be in the process of carving out a double bottom against its US counterpart after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.6679, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 0.6791. Alternatively, a turn below the 0.6443-97 area (23.6% Fib expansion, July 16 low) opens the door for a test of the 38.2% level at 0.6261.
The dominant NZD/USD trend continues to favor the downside. With that in mind, we will treat any on-coming gains as corrective and look to an upswing as an opportunity to enter short. In the meantime, we will remain on the sidelines.
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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.