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NZD/USD Technical Analysis ? Short Trade in Play Sub-0.85

June 1, 2014

Ilya Spivak

Talking Points:

  • NZD/USD Technical Strategy: Short at 0.8493
  • Support: 0.8391-0.8415 (horizontal pivot, 50% Fib exp.), 0.8329 (61.8% Fib exp.)
  • Resistance:0.8500 (38.2% Fib ret.), 0.8527 (former support), 0.8541 (trend line)

    The New Zealand Dollar turned lower expected against its US namesake after putting in a Bearish Engulfing candlestick pattern. A close below the 0.85 figure has exposed the 0.8391-0.8415 area, marked by a horizontal barrier in play since September 2013 and the 50% Fibonacci retracement. Alternatively, a reversal back above 0.8500 clears the way for a test of support-turned-resistance at 0.8527, followed by a falling trend line at 0.8541.

    We entered short NZDUSD at 0.8493, initially targeting 0.8415. A stop-loss is set to trigger on a daily close above 0.8565. We will take profit on half of the position and trail the stop-loss to the breakeven level once the first target is hit.

    NZD/USD Technical Analysis - Short Trade in Play Sub-0.85

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    Source: DailyFx

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