NZD/USD Responds to .8265; Shorts Favored Below

DailyFX

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eliottWaves_nzd-usd_body_Picture_7.png, NZD/USD Responds to .8265; Shorts Favored Below

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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-The NZDUSD remains one of the more compelling longer term bearish possibilities. Consider that…

-The decline from the April high unfolded in 5 waves (impulsive), the advance from the August low is defined by converging lines (pennant, common in bear market advances)

-A 2 month head and shoulders top is possible.

Trading Strategy: NZDUSD rallied into and reversed right at internal trendline resistance and the mentioned .8265. Order to short .8220, stop .8270. Exceeding .8270 would shift focus to .8310/50.

LEVELS: .8075 .8103 .8139 | .8220 .8265 .8295

--- Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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