NZD/USD Technical Analysis: Ready to Resume Down Trend?
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- NZD/USD Technical Strategy: Short at 0.7205
- Kiwi Dollar down trend may resuming down trend vs. US cousin
- Break of near-term support paves the way back below 0.70 figure
The New Zealand Dollar is attempting to resume the two-month down trend against its US counterpart following a corrective recovery. Prices bounced last week after testing the 0.69 figure, spurred on by the outcome of the FOMC monetary policy announcement (as expected).
From here, a daily close below the 14.6% Fibonacci expansion at 0.7020 opens the door for a test of the 23.6% level at 0.6976. Alternatively, a reversal above 0.7075 (trend line, 38.2% Fib retracement) sees the next upside barrier marked by the 50% retracement at 0.7133.
A short NZDUSD position was triggered at 0.7205 and partial profit was subsequently booked after the trade hit its first objective. The rest of the trade remains open to capture renewed downward momentum. The stop-loss remains at the breakeven level (0.7205).
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