NZD/USD Technical Analysis – Bulls Lose Grip on 0.87 Level
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- NZD/USD Technical Strategy: Flat
- Support: 0.8666, 0.8615, 0.8574
- Resistance:0.8745, 0.8779, 0.8851
The New Zealand Dollar turned lower against its US namesake, with prices slipping below the 0.87 figure once again. Near-term support comes in at 0.8666, the 23.6% Fibonacci expansion, with a break below that on a daily closing basis exposing the 38.2% level at 0.8615. Resistance remains in the 0.8745-79 area, marked by the April 10 and May 6 highs. A reversal above that sees the next upside barrier at the 61.8% threshold of an alternate Fib expansion setup at 0.8851.
Risk/reward considerations argue against entering short with prices sitting squarely at support. On the other hand, taking up the long side looks premature absent a defined bullish reversal signal. We will remain flat for now.
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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.