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NZD/USD Technical Analysis ? Rally Capped Below 0.84

February 12, 2014

Ilya Spivak

Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Support: 0.8297(50% Fib ret.), 0.8239 (38.2% Fib ret.)
  • Resistance: 0.8355 (61.8% Fib ret.), 0.8427 (76.4% Fib ret.)

    The New Zealand Dollar rose as we suspected, with a break above falling trend line resistance seemingly overturning the bearish bias prevalent since mid-January. A Shooting Star below resistance marked by the 61.8% Fibonacci retracement at 0.8355 hints at a potential reversal however. Breaking below support at 0.8297, the 50% level, exposes the 38.2% Fib at 0.8239. Alternatively, a reversal above resistance targets the 76.4% retracement at 0.8427.

    A short position at current levels looks unattractive from a risk/reward perspective as prices trade squarely at relevant resistance. On the other hand, a long trade seems premature absent confirmation of reversal. On balance, we will remain on the sidelines for now.

    dailyclassics_nzd-usd_body_Picture_11.png, NZD/USD Technical Analysis - Rally Capped Below 0.84

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    Source: DailyFx

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