NZD/USD Technical Analysis – Double Top Resistance Key
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- NZD/USD Technical Strategy: Flat
- Support: 0.8690, 0.8634, 0.8590
- Resistance:0.8745, 0.8779, 0.8851
The New Zealand Dollar remains in consolidation mode against its US namesake as prices test double top resistance. A daily close above the 0.8745-79 area, bracketed by the April 10 and May 6 highs initially exposes the 61.8% Fibonacci expansion at 0.8851. Alternatively, a reversal below support at 0.8690, the 76.4% Fib retracement, opens the door for a challenge of the 61.8% level at 0.8634.
Negative RSI divergence hints at ebbing bullish momentum and warns a reversal lower may be brewing. A clear-cut short trade trigger is absent however. With that in mind, we remain on the sidelines and continue to monitor price action for selling opportunities.
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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.