NZD/USD Technical Analysis: Digesting Above Trend Support
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- NZD/USD Technical Strategy: Flat
- Support: 0.8443, 0.8350, 0.8236
- Resistance:0.8535, 0.8584, 0.8650
The New Zealand Dollar paused to consolidate losses against its US namesake after turning violently lower amid evolving RBNZ monetary policy expectations. A daily close below support at 0.8443, the intersection of a rising trend line set from September 2013 and 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 established from January, now at 0.8584.
We are tactically opting to stand aside. Chasing the dramatic selloff played out over recent weeks seems unattractive absent confirmation of continued downside follow-through on a break of longer-term trend line support. With that in mind, we will remain on the sidelines 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.