NZD/USD Technical Strategy: Flat

Prices put in a Bullish Engulfing candlestick pattern above support at 0.8052, the November 16 2012 low, hinting a move higher is ahead. Near-term resistance is at 0.8181, a formerly broken horizontal support level, with a break above that targeting the 38.2% Fibonacci retracement at 0.8261. Alternatively, a move below support eyes the 0.80 figure and the September 5 2012 low at 0.7914. We will opt to wait for added confirmation before entering a trade and stand aside for now.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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