NZD/USD Technical Analysis: 11-Month Trend Line Pressured
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- NZD/USD Technical Strategy: Flat
- Support: 0.8443, 0.8350, 0.8236
- Resistance:0.8535, 0.8587, 0.8650
The New Zealand Dollar has come under renewed selling pressure against its US counterpart following a brief period of consolidation. 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 0.8587.
Risk/reward considerations argue against entering short with prices trading in close proximity to support. On the other hand, the absence of a defined bullish reversal signal suggests taking up the long side is premature. 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.