FXCM

NZDUSD: Candlesticks Point to Bearish Reversal as Prices Break Channel Support

Friday July 3, 11:32 AM

My picks: Short NZDUSD
Expertise: Global Macro, Classic Technical Analysis
Average Time Frame of Trades: 1 week - 6 months

Last week, I wrote that the New Zealand Dollar was testing support at the bottom of a rising channel that has guided the pair higher since risky assets (including high-yielding currencies) began to rebound in early March. NZDUSD has now broken below the lower boundary of this channel while showing a Three Black Crows bearish reversal signal, a formidable sign of continued downside ahead. Enter short from here, initially targeting April’s swing lows at 0.5522. A stop-loss will be activated on a daily close above 0.6601, the 06/02 wick high.

For complete analysis of the major currencies, please see my latest weekly technial outlook report.

Source:Ilya Spivak, Currency Analyst strategist@dailyfx.com

Next Article: Staying Short AUD/JPY
Previous article: Euro Regains Footing But Drop In Retail Sales Could Be Weighing Factor

Search scope:

News & Opinions Home

Market Place

FXCM

NZDUSD: Candlesticks Point to Bearish Reversal as Prices Break Channel Support

Also on YAHOO!XTRA: