NZD/USD Technical Analysis – Rally Pauses Below 0.88 Mark
To receive Ilya's analysis directly via email, please SIGN UP HERE
- NZD/USD Technical Strategy: Flat
- Support: 0.8690, 0.8634, 0.8590
- Resistance:0.8745, 0.8779, 0.8851
The New Zealand Dollar has paused to digest gains after jumping to a six-week high against its US counterpart yesterday. Resistance remains in the 0.8745-79 area, bracketed by the April 10 and May 6 highs. A daily close above this barrier initially targets the 61.8% Fibonacci expansion at 0.8851. Support lines up at 0.8690, the 76.4% Fib retracement. A turn below that clears the way for a test of the 61.8% retracement at 0.8634.
The appearance of negative RSI divergence warns of ebbing upward momentum and hints a reversal downward may be ahead. The absence of a clearly defined bearish signal suggests entering short is premature for now however and we will continue to stand aside.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com