Sunday, September 28, 2014

NZD/USD Technical Analysis: Sellers Now Aiming Below 0.78




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Talking Points:



  • NZD/USD Technical Strategy: Flat


  • Support: 0.7798, 0.7708, 0.7597


  • Resistance:0.7887, 0.7998, 0.8067


The New Zealand Dollar appears vulnerable to deeper losses against its US counterpart after sliding to the weakest level in over a year. A daily close below the 50% Fibonacci expansion at 0.7798 exposes the 61.8% mark at 0.7708. Alternatively, a turn back above the 38.2% Fib at 0.7887 clears the way for a challenge of the 23.6% expansion at 0.7998.



While entering short is a tempting proposition, positive RSI divergence warns of ebbing downside momentum and hints that a reversal higher may emerge around the corner. With that in mind, we will opt to remain flat and wait for a more compelling opportunity.



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NZD/USD Technical Analysis: Sellers Now Aiming Below 0.78



Daily Chart – Created Using FXCM Marketscope 2.0



— Written by Ilya Spivak, Currency Strategist for DailyFX.com





NZD/USD Technical Analysis: Sellers Now Aiming Below 0.78

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