NZD/USD Technical Analysis: Candle Pattern Hints at Bounce

By DailyFx | August 21, 2014 AAA

DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8350, 0.8300, 0.8249
  • Resistance:0.8401-13, 0.8462, 0.8533

The New Zealand Dollar may be readying to correct higher against its US counterpart after prices put in a bullish Piercing Line candlestick pattern. A daily close above the 0.8401-13 area, marked by the 23.6% Fibonacci expansion and the June 4 low, exposes the 23.6% Fib retracement at 0.8462. Alternatively, a reversal below the 38.2% expansion at 0.8350 clears the way for a challenge of the 50% threshold at 0.8300.

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 taking up the long side is premature. With that in mind we will remain flat for now.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

NZD/USD Technical Analysis: Candle Pattern Hints at Bounce

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC
    Forex News

    New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC

  3. Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends
    Forex News

    Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends

  4. NZD/USD Remains Vulnerable Amid Lack Of Reversal Signals
    Forex News

    NZD/USD Remains Vulnerable Amid Lack Of Reversal Signals

  5. British Pound Could Close Out Week with a Bang on UK GDP
    Forex News

    British Pound Could Close Out Week with a Bang on UK GDP

Trading Center