NZD/USD Technical Analysis: Selloff Stalls at Key Trend Line
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- NZD/USD Technical Strategy: Flat
- Support: 0.8443, 0.8350, 0.8236
- Resistance:0.8535, 0.8576, 0.8650
The New Zealand Dollar is in digestion mode after moving aggressively lower against its US counterpart amid evolving RBNZ monetary policy expectations. 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. The extent of selling pressure over recent weeks hints chasing the move lower is an unattractive proposition at this point absent confirmation of continued follow-through on a break of longer-term trend line support.
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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.