Forex: NZD/USD Technical Analysis – Kiwi Accelerates Above 0.83
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- NZD/USD Technical Strategy: Flat
- Support: 0.8289 (50% Fib exp.), 0.8265 (38.2% Fib exp.)
- Resistance: 0.8314 (61.8% Fib exp.), 0.8344 (76.4% Fib exp.)
The New Zealand Dollar shot higher as suspected, clearing falling trend line resistance and thereby hinting that the downtrend from mid-January has been overturned. Prices are probing above the 61.8% Fibonacci expansion at 0.8314, with a daily close above this barrier exposing the 76.4% level at 0.8344. Turning back below 0.8314 sees supports at 0.8289 and 0.8265, the 50% and 38.2% retracements, respectively.
Entering long seems premature absent confirmation of a resistance break on a closing basis. On the other hand, fighting what appears to be accelerating upward momentum absent a reversal signal is a dangerous proposition. As such, we will remain on the sidelines for now.
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.