NZD/USD Technical Analysis – Aiming Above 0.87 Figure
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- NZD/USD Technical Strategy: Flat
- Support: 0.8679 (38.2% Fib exp.), 0.8573 (23.6% Fib exp.)
- Resistance:0.8745-65 (double top, 50% Fib exp.), 0.8851 (61.8% Fib exp.)
The New Zealand Dollar rallied aggressively against its US counterpart following a hawkish RBNZ monetary policy announcement. Prices have narrowly overcome the 38.2% Fibonacci expansion at 0.8679, exposing the 0.8745-65 area marked by the April 10 high and the 50% level. Pushing above that targets the 61.8% Fib at 0.8851. Alternatively, a turn back below 0.8679 sees the first major layer of support at 0.8573, the 23.6% expansion.
A long position chasing prices higher after yesterday’s dramatic rally seems ill-advised from a tactical perspective. On the other hand, positioning offers no clear-cut technical basis to fade upward momentum with a short trade. 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.