NZD/USD Technical Analysis: Readying to Overcome 0.88?
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- NZD/USD Technical Strategy: Flat
- Support: 0.8737, 0.8710, 0.8651
- Resistance:0.8779-93, 0.8834, 0.8875
The New Zealand Dollar may be readying to resume its climb against the US Dollar after a period of consolidation below the 0.88 figure. Near-term 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 move below the 0.8737-48 zone – bracketed by a horizontal pivot in play since April and a rising channel bottom – opens the door for a test of the 23.6% Fib retracement 0.8710.
Prices are too close to resistance to justify entering long from a risk/reward perspective. On the other hand, the absence of a defined bearish reversal signal argues against taking up the short side. 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.