Forex: NZD/USD Technical Analysis – Catalysts Sought Near 0.83
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- NZD/USD Technical Strategy: Flat
- Support: 0.8301 (23.6% Fib exp.), 0.8246 (38.2% Fib exp.)
- Resistance: 0.8336 (14.6% Fib exp.), 0.8382 (trend line, horizontal pivot)
Prices are testing support at 0.8301, the 23.6% Fibonacci expansion, with a break below this boundary exposing the 38.2% level at 0.8246. Alternatively, a reversal above near-term resistance marked by the 14.6% Fib at 0.8336 on a daily closing basis targets 0.8382. This barrier is marked by a falling trend line set from mid-October and a horizontal pivot in play since September.
Range-bound consolidation doesn’t offer a clear-cut directional trade setup. Furthermore, the close proximity of near-term up- and downside levels argues against taking a trade on risk/reward grounds. We will remain flat until something more attractive materializes.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com