NZD/USD Technical Analysis: Eyeing Key Support Above 0.69 Figure
- NZD/USD Technical Strategy: Short at 0.7095
- New Zealand Dollar extends decline after breaking 10-month support line
- Looking for deeper losses ahead but partial profit taken on short position
The New Zealand Dollar continued to push lower against its US namesake as expected after breaking rising trend line support in play since the beginning of the year. Prices have now fallen for seven consecutive sessions, making for the longest losing streak in 10 months.
From here, a daily close below the 0.6952-63 area (100% Fibonacci expansion, June 15 low) opens the door for a test of the 123.6% level at 0.6846. Alternatively, a turn back above support-turned-resistance marked by the October 13 low at 0.7035 paves the way for a challenge of the 61.8% Fib at 0.7124.
The short NZD/USD trade triggered at 0.7095 has hit its initial target at 0.7035 and profit has been taken on half of the position. Remaining exposure has been left open to capture any follow-on weakness. The stop-loss has been adjusted to the breakeven level (0.7095).
See the schedule of upcoming webinars and join us LIVE to follow the financial markets!
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.