(MENAFN- DailyFX) NZD/USD Technical Strategy: FLAT Morning Star candlestick pattern hints at Kiwi Dollar bounce ahead Any upswing is likely to be corrective within a broader bearish trend Waiting for improved risk/reward, technical clarity to enter a trade See our free trading guide to help !
The New Zealand Dollar produced a bullish Morning Star candlestick pattern after finding support above the 0.64 figure against its US counterpart, hinting a rebound may be in the cards ahead. The broader trend bias continues to be defined a series of lower highs and lows stretching back to mid-April however, suggesting that any upswing from here might be corrective.
Prices are now eyeing support-turned-resistance at 0.6501, the September 11 low. A break above that confirmed on a daily closing basis opens the door for a challenge of falling trend resistance in the 0.6549-0.6636 area. Alternatively, turn back below initial support marked by the October 8 low at 0.6425 paves the way for a test of the January 2016 bottom at 0.6348.
An actionable NZD/USD trade setup seems to be absent at present. The path of least resistance favors weakness but entering short now is unattractive as bullish cues emerge. A tactical long position is also unappealing as prices hover just below immediate resistance, skewing risk/reward considerations against the trade. On balance, standing aside until a better opportunity emerges seems most prudent.
NZD/USD TRADING RESOURCES: Just getting started? See our
Having trouble with your strategy? Here's the
and have your questions answered --- Written by Ilya Spivak, Currency Strategist for DailyFX.com
To contact Ilya, use the Comments section below or on Twitter
MENAFN1010201800760000ID1097548924
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.