NZD/USD: Is A Double Bottom Set At 0.84?
Dailyfx | Aug 15, 2014 06:09AM ET
Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.8470, 0.8401, 0.8350
- Resistance:0.8509, 0.8571, 0.8621
The New Zealand Dollar edged higher against its US counterpart after putting in a bullish Piercing Line candlestick pattern, hinting a double bottom may be forming. Initial resistance is at 0.8509, the intersection of a previously broken rising trend line (set from August 2013) and the 23.6% Fibonacci retracement. A break above that on a daily closing basis exposes the 38.2% level at 0.8571. Alternatively, a turn below the 14.6% Fib at 0.8470 opens the door for a test of the June 4 low at 0.8401.
Prices are wedged too closely between near-term support and resistance to justify taking a trade from a risk/reward perspective. We will stand aside for the time being, waiting for a more attractive setup to present itself.
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