NZD/USD Technical Analysis: Sellers Aim Below 0.70 Figure
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Short at 0.7273
- Kiwi Dollar breaks below 0.71 figure, hits two-month low vs. USD
- Short trade remains in play, looking to capture continued weakness
The New Zealand Dollar continues to sink against its US namesake, with prices breaching the 0.71 figure to hit the lowest level in over two months. The pair marked a top and reversed downward after putting in a Bearish Engulfing candlestick pattern, as expected.
Near-term support is now in the 0.6970-85 area (triple bottom, 61.8% Fibonacci retracement), with a break below that on a daily closing basis opening the door for a test of the 76.4% level at 0.6866. Alternatively, a reversal back above the 0.7080-0.7102 zone (50% Fib, horizontal pivot) exposes 0.7176, the 38.3% retracement.
A short NZD/USD position was triggered at 0.7273 and partial profit has been booked. The remainder of the trade remains in play to capture follow-on weakness. The stop-loss has been adjusted to be activated at the breakeven level (0.7273).
What do past NZD/USD price patterns hint about current trends? Find out here !
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.