Forex: NZD/USD Technical Analysis – Buyers Fight to Hold Support
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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 looks poised to extend higher against its US namesake after clearing resistance at 0.8322, the 23.6% Fibonacci expansion. The bulls now aim to challenge the 0.8372-82 area, marked by a horizontal pivot level dating back to September, the 38.2% Fib, and a falling trend line set from mid-October. Pushing above this barrier exposes the 50% expansion at 0.8412. Alternatively, a reversal back below 0.8322 targets the February 20 low at 0.8242.
As we noted yesterday, 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. That argues against taking a trade at present and we will remain on the sidelines, monitoring how the pair behaves 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.