NZD/USD Technical Analysis: New Low Set for 2017
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- NZD/USD Technical Strategy: Short at 0.6863
- Kiwi Dollar suffers largest drop in 2 weeks, sets new 2017 lows
- Short position activated, looking for downside follow-through
The New Zealand Dollar is digesting losses after breaking key support and sinking to the lowest level yet in 2017 against its US counterpart. The currency suffered the largest drop in two weeks following a dovish RBNZ monetary policy announcement.
From here, a daily close below the 50% Fibonacci expansion at 0.6810 opens the door for a test of the 61.8% level at 0.6753. Alternatively, move back above the 38.2% Fib at 0.6867 – now recast as support – sees the next major upside barrier marked by the May 3 high at 0.6967.
An entry order to sell NZD/USD at 0.6863 was activated and the position is now in play. The trade initially targets 0.6810, with a stop-loss set to trigger on a daily close above 0.6890. Profit on half of the position will be booked and stop adjusted to breakeven once the first objective is reached.
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