NZD/USD Technical Analysis: 2016 Uptrend May Be Broken
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NZD/USD Technical Analysis: 2016 Uptrend May Be Broken

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Talking Points:

  • NZD/USD Technical Strategy: Short at 0.7095
  • New Zealand Dollar breaks 10-month rising trend line support
  • Short trade triggered below 0.71, aiming for October swing low

The New Zealand Dollar broke through support at a rising trend line guiding the currency higher against its US counterpart since the beginning of the year . The breach suggests that a longer-term trend reversal may be in progress against a backdrop of swelling Fed rate hike bets .

Near-term support is now at 0.7035, the October 13 low. A daily close below this barrier exposes the 0.6952-63 area (100% Fibonacci expansion, June 15 low). Alternatively, a move back above the 61.8% level at 0.7124 opens the door for a retest of the 50% Fib at 0.7177.

The combination of a major technical break and acceptable risk/reward parameters has led to the activation of a short position at 0.7095. The trade initially targets 0.7035 and carries a stop-loss activated on a daily close above 0.7124. Half of profits will be booked and the stop moved to breakeven when the first objective is reached.

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NZD/USD Technical Analysis: 2016 Uptrend May Be Broken

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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