NZD/USD Technical Analysis: Channel Floor Support in Focus
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- NZD/USD Technical Strategy: Flat
- Support: 0.8779-93, 0.8733, 0.8669
- Resistance:0.8842-62, 0.8903-9, 0.8955
The New Zealand Dollar paused to consolidate gains after rising to the strongest level in three years against its US namesake. Near-term resistance is in the 0.8842-62 area, marked by a major swing high dating back to August 2011 and the 38.2% Fibonacci expansion. A break above that on a daily closing basis targets the 0.8903-9 zone (rising channel top, 50% Fib). Alternatively, a turn through support in the 0.8779-93 region (May 6, June 27 highs) exposes the 23.6% Fib retracement at 0.8733.
Prices are wedged too closely between near-term support and resistance levels to justify taking a trade on the long or short side from a risk/reward perspective. We will remain on the sidelines for now, waiting for a more attractive opportunity 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.