NZD/USD Technical Analysis: looks set to test below the 0.76 figure against the US Dollar
7 January 2015, 06:11
0
457
| Resistance | Support |
|---|---|
| 0.7691 | 0.7556 |
| 0.7827 | 0.7401 |
| 0.7974 | 0.7256 |
The New Zealand Dollar looks set to test below the 0.76 figure against the US Dollar after narrowly overcoming chart support. A daily close below the 0.7556-80 area marked by the bottom of a falling channel and the 23.6% Fibonacci expansion exposes 38.2% level at 0.7401.
A very narrow break of support and the Hammer-like structure of the latest candle hint at elevated false breakout risk. With that in mind, we will tactically opt not to pursue a short position at this time and remain on the sidelines, waiting for a more attractive opportunity to present itself.
