NZD/USD Technical Analysis: Short Position Re-established
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Short at 0.6895
- Kiwi Dollar attempts recovery after finding support at monthly low vs. USD
- Short trade re-established as bearish setup stays intact despite stop-loss hit
The New Zealand Dollar attempted to recover after finding interim support at a weekly low above the 0.68 figure against its US counterpart. Prices turned lower as expected after the appearance of a bearish Dark Cloud Cover candlestick pattern and broke monthly trend support, hinting recent gains are corrective.
Near-term support is at 0.6835, the April 22 low, with a break below that on a daily closing basis opening the door for a test of the 38.2% Fibonacci retracement at 0.6784. Alternatively, a reversal above the 14.6% Fib expansion at 0.6938 paves the way for a challenge of the 23.6% threshold at 0.7002.
Our NZD/USD short position from 0.6863 was narrowly stopped out on a daily close above 0.6887. However, the underlying setup has not been invalidated. With that in mind, we will re-enter the position and adjust the initial objective to 0.6835 as well as set a stop-loss to trigger on a close above 0.6924.
What do FXCM traders’ NZD/USD bets imply about the price trend? Find out here!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.