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NZD/USD Technical Analysis: Down Trend Trying to Resume
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Talking Points:
NZD/USD Technical Strategy: Short at 0.7273
Kiwi Dollar working to resume down trend after corrective recovery
Short position established below 0.73 figure continues to be in play
The New Zealand Dollar is working to resume the down trend against its US counterpart following a corrective recovery launched from above the 0.70 figure. Prices topped below the 0.75 mark as expected, beginning a down move that would go on to break the uptrend from lows set in late May.
From here, a daily close below the 38.2% Fibonacci expansion at 0.7094 opens the door for a test of the 50% level at 0.7041, a barrier reinforced by the October 13 low at 0.7035. Alternatively, a move back above the 0.7160-62 area (23.6% Fib, October 25 close) exposes support-turned-resistance at 0.7235.
A short NZD/USD trade was activated at 0.7273 and profit on half of the position has been taken. Remaining exposure continues to be in play, aiming to capture downward continuation. The stop-loss has been adjusted to the breakeven level (0.7273).
What do past NZD/USD price patterns hint about current trends? Find out here!
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