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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.7406, 0.7332, 0.7246
- Resistance:0.7531, 0.7608, 0.7696
The New Zealand Dollar turned lower anew against its US counterpart, overturning the upside correction played out over the past month. Near-term support is in the 0.7406-18 area (horizontal pivot, 38.2% Fibonacci expansion), with a break below that on a daily closing basis exposing the 50% level at 0.7332. Alternatively, a turn above trend line support-turned-resistance at 0.7531 opens the door for a test of 0.7608 (December 9 low, falling trend line).
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests that taking up the long side is premature. With that in mind, we will remain flat for now.
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Daily Chart - Created Using FXCM Marketscope
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
