NZD/USD Technical Analysis – Familiar Resistance in Play
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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 remains in consolidation mode below the 0.88 figure against its US counterpart. The first layer of support is at 0.8666, the 23.6% Fibonacci retracement. A daily close below that targets the 38.2% level at 0.8615. Key resistance lines up in the 0.8745-79 area, marked by the April 10 and May 6 highs. A reversal above that targets the 61.8% Fib expansion setup at 0.8851.
Prices are too close to resistance to justify entering long from a risk/reward perspective. Alternatively, the absence of a defined bearish reversal signal argues against taking up the short side. We will remain flat for now, waiting for an actionable opportunity to present itself.
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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.