NZD/USD Technical Analysis: Still Stuck in Digestion Mode
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- NZD/USD Technical Strategy: Flat
- Support: 0.8779-93, 0.8733, 0.8669
- Resistance:0.8842-62, 0.8896-0.8909, 0.8955
The New Zealand Dollar is trading water against its US counterpart after advancing to the highest level in three years above the 0.88 figure. Near-term resistance is in the 0.8842-62 area, marked by a major high dating back to August 2011 and the 38.2% Fibonacci expansion. A daily close above that exposes a rising channel top at 0.8896, followed by the 50% Fib at 0.8909. Alternatively, a reversal below the 0.8779-93, marked by the May 6 and June 27 high, targets the 23.6% Fib retracement at 0.8733.
The available trading range is too narrow to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, looking for a more 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.