Monday, March 2, 2015

NZD/USD Candlestick Analysis: Bounce Extends for 4th Week




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Talking Points:



  • NZD/USD Strategy: Flat


  • Recovery Continues for Fourth Week


  • Key Resistance Below 0.76 in Focus


The New Zealand Dollar is pushing higher having completed a bullish Morning Star candlestick pattern and cleared resistance at 0.7418, the 14.6% Fibonacci retracement. From here, a break above the intersection of channel resistance-turned-support and the 23.6% level at 0.7567 aims for the 38.2% Fib at 0.7809. Alternatively, a move back below 0.7418 threatens to open the door for a descent back to January’s swing low at 0.7175.



The dominant long-term NZD/USD trend looks to be favoring the downside. As such, we will treat any on-coming gains as an opportunity to enter short at more compelling levels once the correction is exhausted.


NZD/USD Candlestick Analysis: Bounce Extends for 4th Week


Weekly Chart – Created Using FXCM Marketscope



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





NZD/USD Candlestick Analysis: Bounce Extends for 4th Week

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