NZD/USD Technical Analysis: Down Trend May Be Resuming
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NZD/USD Technical Analysis: Down Trend May Be Resuming

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Talking Points:

  • NZD/USD Technical Strategy: Flat
  • Kiwi Dollar producers bearish reversal signal at critical trend resistance
  • Confirmation of uptrend breach needed for actionable short trade setup

The New Zealand Dollar may be readying to turn lower as prices produce a Bearish Engulfing candlestick pattern at trend resistance capping the upside since September. A turn lower from here would mark continuation of a longer-term down trend triggered by a bearish breakout in mid-November.

A daily close below the 14.6% Fibonacci expansion at 0.7222 opens the door for a challenge of the 23.6% level at 0.7166. Alternatively, a breach above trend line resistance - now at 0.7293 - sees the next major upside barrier marked by the November 8 high at 0.7403.

While the bearish implications of current positioning seem compelling, confirmation of a downturn remains absent without a clear breach of the series of higher highs and lows set from late-December lows. With that in mind, it seems wise to wait for greater clarity before committing to exposure.

Are retail traders buying or selling NZD/USD and what does it mean for the trend? Find out here !

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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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