Forex: NZD/USD Technical Analysis – Rejected at Key Trend Line
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- NZD/USD Technical Strategy: Flat
- Support: 0.8301 (23.6% Fib exp.), 0.8246 (38.2% Fib exp.)
- Resistance: 0.8382 (trend line, horizontal pivot), 0.8432 (Jan 14 high)
The New Zealand Dollar recoiled from resistance at 0.8382, the intersection of a horizontal pivot level in play since mid-September 2013 and a falling trend line set from late October. Near-term support is at 0.8301, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 0.8246. Alternatively, a daily close above resistance initially exposes the January 14 high at 0.8432.
Taking a short position with prices sitting squarely at relevant support is unattractive from a risk/reward perspective. A clear-cut bullish reversal is absent however, arguing against the long side. We will continue to stand on the sidelines and monitor prices for a palatable setup.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com