NZD/USD Technical Analysis: Year-to-Date Uptrend Broken
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- NZD/USD Technical Strategy: Flat
- Support: 0.8443, 0.8350, 0.8236
- Resistance:0.8535, 0.8566, 0.8650
The New Zealand Dollar continues to fall against its US counterpart in the aftermath of the RBNZ interest rate decision, overturning the year-to-date uptrend. A daily close below support at 0.8443, the 50%Fibonacci retracement, exposes the 61.8% level at 0.8350.Alternatively, a reversal above the 38.2% Fib at 0.8535 aims for support-turn-resistance at a rising trend line set from January, now at 0.8566.
While entering a short position at this point is tempting, we will tactically opt to stand aside. We already hold long USD exposure against the Euro and the Canadian Dollar. As such, we think it best not to over-commit as heavy-duty US event risk begins to cross the wires in the days ahead.
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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.