NZD/USD Technical Analysis: Short Position Remains in Play
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- NZD/USD Technical Strategy: Short at 0.6370
- Prices Remain Locked in Well-Defined Range Above 0.62 Figure
- Short Position Remains in Play, Awaiting Down Trend Resumption
The New Zealand Dollar continues to oscillate in a well-defined rangeabove the 0.62 figure against its US namesake. The dominant trend continues to look decidedly bearish, painting the current standstill as digestion preceding the resumption of downward momentum.
Near-term support is in the 0.6219-44 area, marked by the 38.2% Fibonacci expansion and the September 7 low. A break below this barrier on a daily closing basis opens the door for a test of the 50% level at 0.6069. Alternatively, a move above the 23.6% Fib at 0.6406 clears the way for a challenge of the 0.6497-0.6521 zone, bracketed by the July 16 low and the 14.6% expansion.
We entered short NZDUSD at 0.6370, initially targeting 0.6219. A stop-loss has been set to trigger on a daily close above 0.6521. We will book profit on half of the trade and adjust the stop-loss to the breakeven level once the initial target is hit.
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