NZD/USD Technical Analysis – May High Under Pressure
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- NZD/USD Technical Strategy: Flat
- Support: 0.8743, 0.8641, 0.8600
- Resistance:0.8793, 0.8834, 0.8875
The New Zealand Dollar renewed its push higher against the US Dollar, with prices edging closer to the 0.88 figure. Initial resistance is in the 0.8779-93 area, marked by the May 6 high and the 38.2% Fibonacci expansion. A break above that on a daily closing basis exposes the 50% level at 0.8834. Alternatively, a reversal below the 0.8743-45 zone bracketed by the 23.6% Fib and the April 10 top expose swing lows in the 0.8641-61 region. Negative RSI divergence argues in favor of the downside.
Risk/reward considerations warn against entering long with prices sitting just below relevant resistance. Alternatively, the absence of a defined bearish reversal signal suggests it is premature to take up the short side. On balance, we remain flat.
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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.