NZDUSD Technical Analysis: Morning Star Pattern

• 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.

If we look at Ichimoku chart for W1 timeframe so Chinkou Span line of Ichimoku indicator is crossing the price on open bar from above to below which is indicating the future possible breakdown with the reversal of price movement from primary bullish to primary bearish market condition: if the price will break 0.8310 support level - we may see this reversal with the ranging market condition within primary bearish for example.