NZD/USD Technical Analysis: Critical Support Above 0.84
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- NZD/USD Technical Strategy: Flat
- Support: 0.8443, 0.8350, 0.8236
- Resistance:0.8535, 0.8572, 0.8650
The New Zealand Dollar remains under pressure against its US namesake in the aftermath of the RBNZ rate decision, dropping to the lowest level in nearly two months. Near-term support is at 0.8443, the intersection of a rising trend line set from September 2013 and the 50%Fibonacci retracement. Breaking below this barrier on a daily closing basis exposes the 61.8% level at 0.8350. Alternatively, a turn above the 38.2% Fib at 0.8535 clears the way for a challenge of support-turn-resistance at a trend line established from January, now at 0.8572.
We are tactically opting to stand aside for now because 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 continues cross the wires through the week-end.
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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.