NZD/USD Technical Analysis – Is a Larger Downturn Ahead?

| 11 april, 2014 | 0 kommentarer

To receive Ilya’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8667-75 (Apr’13 high, 23.6% Fib exp.), 0.8513 (Oct 22 close)
  • Resistance: 0.8762 (38.2% Fib exp.), 0.8839 (50% Fib exp.)

The New Zealand may be signaling a reversal lower is ahead against its US counterpart after prices completed a bearish Dark Cloud Cover candlestick pattern. Negative RSI divergence bolsters the case for a downside scenario. Sellers are testing resistance-turned-support in the in the 0.8667-75 area, marked by the April’13 high and the 23.6% Fib. A break below this boundary initially exposes the October’13 top at 0.8513. Near-term resistance is at 0.8762, the 38.2% Fib, with a push above that eyeing the 50% expansion at 0.8839.

Prices are too close to relevant support to justify selling the pair at current levels from a risk/reward perspective. We will stand aside for now, waiting for confirmation of a breakdown to pull the trigger on a short position.

Confirm your chart-based trade setups with the Technical Analyzer. New to FX? Start Here!

dailyclassics_nzd-usd_body_Picture_11.png, NZD/USD Technical Analysis  Is a Larger Downturn Ahead?

Daily Chart – Created Using FXCM Marketscope 2.0

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

Taggar: ,

Kategori: Analys från DailyFX

Om skribenten ()

DailyFX från FXCM ger dig dagligen färska tekniska analyser på valuta och råvaror. FXCM är en ledande handelsplattform för trading av finansiella tillgångar med kraftfulla verktyg för alla sorters handel.

Lämna ett svar

Din e-postadress kommer inte publiceras. Obligatoriska fält är märkta *