Forex: NZD/USD Technical Analysis – 11-Month Resistance Tested
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- NZD/USD Technical Strategy: Flat
- Support: 0.8582 (100% Fib exp.), 0.8517 (trend line)
- Resistance: 0.8630 (Apr 13 2013 close), 0.8663 (123.6% Fib exp.)
The New Zealand Dollar resumed its upward push against the US Dollar, taking out resistance at 0.8582 marked by the 100% Fibonacci expansion to challenge the April 2013 top at 0.8630. A break above this barrier aims for the 123.6% level at 0.8663. Alternatively, a turn back below 0.8582 exposes a rising trend line at 0.8517.
Prices are too close to relevant resistance to make a long position attractive from a risk/reward perspective. On the other hand, entering short appears premature without a defined bearish reversal signal. We will continue to stand aside for now.
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.