NZD/USD Technical Analysis: Kiwi Drops to 6-Week Low
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- NZD/USD Technical Strategy: Flat
- Support: 0.8618, 0.8567, 0.8504
- Resistance:0.8658-69, 0.8733, 0.8779
The New Zealand Dollar dropped to the lowest level in six weeks against the US Dollar following the RBNZ monetary policy announcement. A daily close below support at 0.8618, the 50% Fibonacci retracement, exposes the 61.8% level at 0.8567. Alternatively, a reversal above the 0.8658-69 area – marked by the June 17 close and the 38.2% Fib – opens the door for a test of the 23.6% retracement at 0.8733.
Entering short seems premature absent confirmation of a break below support. On the other hand, taking up the long side lacks support from a defined bullish reversal signal. We will continue to stand aside for the time being.
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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.