NZD/USD Technical Analysis – Kiwi Still in Digestion Mode
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- NZD/USD Technical Strategy: Flat
- Support: 0.8743-45, 0.8641, 0.8600
- Resistance:0.8779-93, 0.8834, 0.8875
The New Zealand Dollar remains in digestion mode, with prices continuing to tread water below May’s swing high against the US Dollar. A daily close above the 0.8779-93 area, marked by the May 6 high and the 38.2% Fibonacci expansion, opens the door for a test of the 50% level at 0.8834. Alternatively, a turn beneath the 0.8743-45 zone bracketed by the 23.6% Fib and the April 10 high exposes swing lows in the 0.8641-61 region.
Negative RSI divergence is still hinting at ebbing upside momentum, warning of an on-coming downward reversal, but confirmation remains absent. That suggests entering short is premature for the time being. We will stay on the sidelines until a more actionable setup presents 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.