NZD/USD Technical Analysis – Downturn Risk Noted Sub-0.88
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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 is consolidating recent gains below May’s swing high against the US Dollar. A break above the 0.8779-93 area marked by the May 6 high and the 38.2% Fibonacci expansion 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 opens the door for a test of swing lows in the 0.8641-61 region.
Negative RSI divergence warns of ebbing upside momentum and hints a reversal downward may be ahead. A clear-cut bearish signal is absent for the time being however, so entering short seems premature. We will remain flat for now, waiting for an actionable setup to emerge.
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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.