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New Zealand Dollar technical positioning continues to warn of a top being carved out against the currency’s US counterpart. A Shooting Star candlestick below resistance at 0.8502, the 76.4% Fibonacci expansion, has marked break in the rally from late February and may precede a reversal. Breaking below the 61.8% levelat 0.8452 exposes the 50% Fib at 0.8412. Alternatively, a push above resistance targets the 100% expansion at 0.8582.
Prices’ proximity to support argues against a short position on risk/reward grounds. Furthermore, a Shooting Star candle is a sign of indecision rather than outright reversal and confirmation is needed to make for an actionable setup. We will remain flat for now.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com