NZD/USD Technical Analysis – Resistance Met Below 0.87
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- NZD/USD Technical Strategy: Flat
- Support: 0.8634 (61.8% Fib ret.), 0.8590 (50% Fib ret.)
- Resistance:0.8690 (76.4% Fib ret.), 0.8745 (double top)
An aggressive New Zealand Dollar rally has paused after the currency launched upward in the aftermath of a hawkish RBNZ monetary policy announcement. Near-term resistance is now at 0.8690, the 76.4% Fibonacci retracement, with a break above that on a daily closing basis targeting the April 10 high at 0.8745. Support is at 0.8634, the 61.8% level. Reversing beneath that clears the way for a challenge of the 50% Fib at 0.8590.
Current positioning does not offer an actionable trade signal at this point. We will opt to remain on the sidelines for the time being, waiting for a more attractive opportunity to present itself.
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.