NZD/USD Technical Analysis: Kiwi Recovery in the Cards?

By DailyFx | August 28, 2014 AAA

DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8314, 0.8243, 0.8185
  • Resistance:0.8401-34, 0.8511, 0.8548

The New Zealand Dollar may be preparing to bounce against its US counterpart following the formation of a bullish Morning Star candlestick pattern. Near-term resistance is in the 0.8401-34 area, marked by the 23.6% retracement and the June 4 low, with a break above that on a daily closing basis exposing the 38.2% level at 0.8511. Alternatively, a turn below the 23.6% Fib expansion at 0.8314 opens the door for a test of the 38.2% barrier at 0.8243.

Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal suggests taking up the short 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: Kiwi Recovery in the Cards?

Daily Chart - Created Using FXCM Marketscope 2.0

comments powered by Disqus
Related Forex Analysis
  1. EUR/USD sitting just above 1.2950 support
    Forex News

    EUR/USD sitting just above 1.2950 support

  2. Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data
    Forex News

    Yen Gains, Aussie Dollar Falls on Soft Chinese Economic Data

  3. USD/JPY drifting lower, but still well above 107.00
    Forex News

    USD/JPY drifting lower, but still well above 107.00

  4. Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping
    Forex News

    Crude Oil Prices Aiming to Extend Lower, SPX 500 May Be Topping

  5. USD/JPY Technical Analysis: Prices Set New Six-Year High
    Forex News

    USD/JPY Technical Analysis: Prices Set New Six-Year High

Trading Center