Forex: NZD/USD Technical Analysis – Edging Toward 0.84 Figure
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- NZD/USD Technical Strategy: Flat
- Support: 0.8297(50% Fib ret.), 0.8239 (38.2% Fib ret.)
- Resistance: 0.8355 (61.8% Fib ret.), 0.8427 (76.4% Fib ret.)
The New Zealand Dollar rose as we suspected, with a break above falling trend line resistance set from mid-January arguing for an upside bias in the near term. Prices are testing the 61.8% Fibonacci retracement at 0.8355, with a daily close above this barrier exposing the 76.4% level at 0.8427. A reversal below the 50% Fib at 0.8297 aims for the 38.2% retracement at 0.8239.
Entering long with prices squarely at resistance is unattractive from a risk/reward perspective. Alternatively, trying the short side lacks a viable downward reversal signal 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