Monday, March 30, 2015

NZD/USD Technical Analysis: Three-Week Uptrend at Risk




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Talking Points:



  • NZD/USD Technical Strategy: Flat


  • Support: 0.7492, 0.7429, 0.7366


  • Resistance:0.7570, 0.7638, 0.7696


The New Zealand Dollar is edging lower as expected after putting in a bearish Evening Star candlestick pattern. Near-term support is at 0.7492, the 38.2% Fibonacci retracement, with a break below that on a daily closing basis exposing the 50% level at 0.7429.Alternatively, a reversal above the 23.6% Fib at 0.7570 opens the door for a test of falling trend line resistance at 0.7638.



Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.



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NZD/USD Technical Analysis: Three-Week Uptrend at Risk



Daily Chart – Created Using FXCM Marketscope



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





NZD/USD Technical Analysis: Three-Week Uptrend at Risk

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