Forex: NZD/USD Technical Analysis – Retesting 0.83 Figure Anew
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- NZD/USD Technical Strategy: Flat
- Support: 0.8246 (38.2% Fib exp.), 0.8201 (50% Fib exp.)
- Resistance: 0.8301 (23.6% Fib exp.), 0.8382 (trend line, horizontal pivot)
The New Zealand Dollar found interim support at 0.8246, the 38.2%Fibonacci expansion and bounced to retest the 23.6% level at 0.8301. A break above the latter boundary targets 0.8382, the intersection of a horizontal pivot in play since mid-September 2013and a falling trend line set from late October. Alternatively, a turn below 0.8246 aims for the 50% Fib at 0.8201.
Risk/reward considerations argue against a long position with prices trading squarely at relevant resistance, while the absence of a reversal signal warns against taking up the short side. We will remain flat for now until an actionable setup presents itself.
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.