NZDUSD |Trying for Double Bottom | 10.08.2015
- NZDUSD Technical Strategy : Flat
- Support: 0.6443, 0.6261, 0.6114
- Resistance:0.6679, 0.6791, 0.6973
The New Zealand Dollar edged higher against its US counterpart as expected after putting in a Bullish Engulfing candlestick pattern. Near-term resistance is at 0.6679, the 14.6% Fibonacci retracement, with a break above that on a daily closing basis exposing the 23.6% level at 0.6791. Alternatively, a turn below the 0.6443-97 area (23.6% Fib expansion, July 16 low) opens the door for a test of the 38.2% level at 0.6261.
The dominant NZDUSD trend continues to favor the downside. With that in mind, we will treat any on-coming gains as corrective and look to an upswing as an opportunity to enter short. In the meantime, we will remain on the sidelines.