NZD/USD Technical Analysis: 1-Month Low Hit Below 0.87
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- NZD/USD Technical Strategy: Flat
- Support: 0.8618, 0.8567, 0.8504
- Resistance:0.8669, 0.8733, 0.8779-93
The New Zealand Dollar dropped for a third consecutive day against its US counterpart, sliding below the 0.87 figure to hit a one-month low. Sellers are aiming to challenge the 50% Fibonacci retracement at 0.8618, with a break below that on a daily closing basis exposing the 61.8% level at 0.8567. Alternatively, a reversal back above the 38.2% Fib at 0.8669 opens the door for a test of the 23.6% retracement at 0.8733.
We will tactically opt not to enter short. Next week brings the RBNZ monetary policy announcement, with markets pricing in an 84 percent probability of another interest rate hike. With that in mind, we will remain on the sidelines and look for a bounce to enter short rather than chase the pair lower at present.
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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.