NZD/USD Technical Analysis – Kiwi Soars to 6-Week High
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- NZD/USD Technical Strategy: Flat
- Support: 0.8690 (76.4% Fib ret.), 0.8634 (61.8% Fib ret.)
- Resistance:0.8745-79 (Apr 10 high, 50% Fib exp., May 6 high), 0.8851 (61.8% Fib exp.)
The New Zealand Dollar advanced to a six-week high against its US counterpart in the aftermath of the Federal Reserve monetary policy announcement. Near-term resistance is now in the 0.8745-79 area, bracketed by the April 10 and May 6 highs. A break higher on a daily closing basis exposes the 61.8% Fibonacci expansion at 0.8851. Support is at 0.8690, the 76.4% Fib retracement. A reversal below that opens the door for a challenge of the 61.8% retracement at 0.8634.
Risk/reward considerations argue against entering long with prices sitting just below resistance. On the other hand, taking up the short side is premature absent a defined bearish reversal signal. We will remain flat 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.