Forex: NZD/USD Technical Analysis – Critical Resistance Below 0.84
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- NZD/USD Technical Strategy: Flat
- Support: 0.8322 (23.6% Fib exp.), 0.8242 (Feb 20 low)
- Resistance: 0.8372 (38.2% Fib exp., trend line, horizontal pivot), 0.8412 (50% Fib ret.)
The New Zealand Dollar launched a recovery against its US counterpart, taking out resistance at 0.8322 marked by the 23.6% Fibonacci expansion. The bulls now aim to challenge the 0.8372-82 area, marked by a now-familiar horizontal pivot level, the 38.2% Fib and a falling trend line set from mid-October. A reversal back below 0.8322 targets the February 20 low at 0.8242.
Maintaining a risk/reward ratio of at least 1:1 calls for a long entry price no higher than 0.8312. This level is not only below the current market, but underneath near-term support as well. As such, we will opt to stand aside and monitor how the pair resolves itself at resistance near the 0.84 figure to plan our next move.
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.