NZD/USD Technical Analysis: Waiting to Re-Establish Short
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Talking Points:
NZD/USD Technical Strategy:Flat
Support: 0.7802, 0.7682, 0.7525
Resistance:0.7937, 0.8034, 0.8109
The New Zealand Dollar looks to have resumed the down trend against its US namesake after prices violated the series of higher highs and higher lows set from early November. A daily close below the 14.6% Fibonacci expansion at 0.7802 exposes the 0.7682-96 area marked by the July 2013 bottom and the 23.6% level. Alternatively, a turn above the 23.6% Fib retracement at 0.7937 opens the door for a test of the October 21 high at 0.8034.
We sold NZDUSD at 0.7909 and subsequently booked profits on half of the position. The remainder of the trade was stopped out at breakeven last week and we will opt to remain on the sidelines for now, waiting for an attractive opportunity to re-enter the position.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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