NZD/USD Technical Analysis: Trying to Carve Out a Bottom

By DailyFx | Updated September 01, 2014 AAA

DailyFX.com -

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

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8330, 0.8283, 0.8206
  • Resistance:0.8401-34, 0.8511, 0.8553-73

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 at 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 14.6% Fib expansion at 0.8330 opens the door for a test of the 23.6% barrier at 0.8283.

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: Trying to Carve Out a Bottom

Daily Chart - Created Using FXCM Marketscope 2.0

You May Also Like

COMPANIES IN THIS ARTICLE
Related Forex Analysis
  1. Forex News

    NZD/USD Technical Analysis: Treading Water Near 0.77

  2. Forex News

    Yen Down on Risk Appetite Swell But Year-End Flows May Fuel Turn

  3. Forex News

    NZD/USD Technical Analysis: Waiting for Direction Cues

  4. Forex News

    US Dollar Once Again Looks like a Buy versus Euro, Major Currencies

  5. Forex News

    New Zealand Dollar Reversal is Short-Lived

Trading Center