NZD/USD Technical Analysis – Upswing Stalled 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)
The New Zealand Dollar is in digestion mode after launching a sharp rally against its US namesake following a hawkish RBNZ monetary policy announcement. Initial resistance comes in at 0.8690, the 76.4% Fibonacci retracement. A daily close above this barrier exposes the April 10 high at 0.8745, a level that has acted has acted as a double top. Near-term support is at 0.8634, the 61.8% Fib. A turn below that opens the door for a test 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.