NZD/USD Technical Analysis: 2014 Uptrend Under Pressure
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- NZD/USD Technical Strategy: Flat
- Support: 0.8535, 0.8443, 0.8350
- Resistance:0.8650, 0.8721, 0.8779
The New Zealand Dollar is testing the boundaries of its year-to-date rising trend against the US Dollar having slumped following RBNZ interest rate decision. A daily close below support at 0.8535, the intersection of a rising trend line set from January and the 38.2% Fibonacci retracement, exposes the 50% level at 0.8443. Alternatively, a reversal above the 0.8650, the 23.6% Fib, opens the door for a test of the 23.6% retracement at 0.8721.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal argues against taking up the long 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.