Forex: NZD/USD Technical Analysis – Choppy Price Action Continues
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- NZD/USD Technical Strategy: Flat
- Support: 0.8239 (38.2% Fib ret.), 0.8167 (23.6% Fib ret.)
- Resistance: 0.8241 (50% Fib ret., trend line), 0.8286 (61.8% Fib ret.)
The New Zealand Dollar recoiled upward as we suspected, narrowly edging above the 38.2% Fibonacci retracement at 0.8239. The next upside barrier from here lines up at 0.8297, the 50% level. A daily close back below 0.8239 opens the door for a slide back to 0.8167, the 23.6% Fib.
On balance, price action has shown relatively poor adherence to technical levels in recent months, carving out a choppy range since late September. That diminishes our level of confidence in seeing follow-through on breaks of technical barriers, particularly as narrow as we’re seeing at present. We will wait for something more clear-cut to emerge before taking a position.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.