Forex: NZD/USD Technical Analysis – Familiar Resistance Slows Rally
To receive Ilya's analysis directly via email, please SIGN UP HERE
- 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 is stalling at resistance in the 0.8355-82 area, marked by a horizontal pivot dating back to mid-September and the 61.8% Fibonacci expansion. A break higher initially exposes the 76.4% level at 0.8427. Alternatively, a downward sees initially support at 0.8297, the 50% Fib, followed by the 38.2% retracement at 0.8239.
Entering long here seems premature absent a clear-cut break above resistanceon a daily closing basis. On the other hand, a short trade seems appears to lack a solid basis without a defined reversal signal. 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.