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

    Trading Video: Sentiment, Dollar and Euro All At-Risk Next Week

  2. Investing

    NZD/USD Bounces Significantly During Thursday Session

  3. Forex News

    NZD/USD Technical Analysis: March Top Held as Resistance

  4. Forex News

    NZD/USD Drops Sharply from Trendline

  5. Forex News

    NZD/USD Failure to Close Above 0.7700 Raises Risk for Near-Term Top

Trading Center