NZD/USD Technical Analysis: Kiwi Bounce in the Works?
- NZD/USD Technical Strategy: Short at 0.7095
- New Zealand Dollar erases corrective upswing, drops to 4-month low
- RSI divergence hints at bounce but firm confirmation remains absent
The New Zealand Dollar faced renewed selling pressure after a brief corrective upswing, sliding to the lowest level in four months against its US namesake. Early signs of positive divergence hint downside momentum may be ebbing but confirmation of reversal is decidedly absent for now.
A daily close below the 100% Fibonacci expansion at 0.6952 opens the door for a challenge of the 123.6% level at 0.6846. Alternatively, a reversal above the 0.7058-65 area (76.4% level, November 21 close) paves the way for a test of the 61.8% Fib at 0.7124.
A short NZD/USD position was activated at 0.7095, with partial profit booked after prices met the trade’s initial target. The rest of exposure remains in play, looking to capture any further weakness. The stop-loss has been trailed to the breakeven level (0.7095).
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