NZD/USD .8190 Break Needed to Confirm an Important Top

DailyFX

Daily

View photo

.
eliottWaves_nzd-usd_body_nzdusd.png, NZD/USD .8190 Break Needed to Confirm an Important Top

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader and see ideas on other USD crosses

-NZDUSD has broken the line that extends off of the August and 10/10 lows. Like AUDUSD, the advance from the YTD low forms converging lines which is consistent with a bear market rally.

-A break below .8190 would complete a nearly 2 month head and shoulders top. Price would quickly encounter the 9/13 uncovered close at .8133. Price spiked into .8170 on Tuesday but failed to close below .8190 for even one hour.

Trading Strategy: Price may not have closed below .8190 but the close is the lowest since 9/17. A bearish bias is warranted against .8300 (Monday high). The head and shoulders objective is .7840.

LEVELS: .8035 .8103 .8133 | .8228 .8260 .8287

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

Rates

View Comments