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Talking Points:
- NZD/USD Technical Strategy: Flat
- Support: 0.8501 (trend line), 0.8474 (23.6% Fib ret.)
- Resistance: 0.8582 (100% Fib exp.), 0.8663 (123.6% Fib exp.)
The New Zealand Dollar continues to tread water at resistance below 0.86 to the US Dollar. A Shooting Star candle hints a turn lower may be ahead, but follow-through has been absent thus far. The first layer of support is at 0.8501, marked by a rising trend line set from early February. A break below that initially exposes the 23.6% Fibonacci retracement 0.8474. Alternatively, a push above the 100% Fib expansion at 0.8582 aims for the 123.6% level at 0.8663.
On one hand, prices are too close to relevant resistance to justify a long position. Furthermore, the Shooting Star remains technically valid absent a close above the candle’s high. On the other, confirmation of bearish reversal is incomplete, with a break of rising trend support preferred in that regard. We will wait on the sidelines for the time being.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
