NZD/USD Technical Analysis: Rejected at Range Top Again
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- NZD/USD Technical Strategy: Pending short at 0.7205
- Kiwi Dollar retreats after testing familiar range top once again
- Looking to enter short position on a test above the 0.72 figure
The New Zealand Dollar recoiled downward after testing now-familiar range resistance above the 0.72 figure, hinting at renewed selling ahead against the currency’s US cousin. Overall chart positioning has argued for a bearish bias since a top was established in early February, as expected.
Near-term support is at 0.7138, the 38.2%Fibonacci expansion, with a break below that opening the door for a challenge of the 50% level at 0.7064. Alternatively, a daily close above the 0.7229-39 area (23.6% Fib, December 14 high) paves the way for a test of the 0.7376-0.7403 zone (November 8, February 7 highs).
Prices are a bit too far below the range top to justify entering short currently from a risk/reward perspective. Instead, an entry order to sell the pair will be established at 0.7205. If triggered, the position will initially target 0.7138 and carry a stop-loss activated on a daily close above 0.7239.
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