NZD/USD Technical Analysis: Stalling at Trend Line Support
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- NZD/USD Technical Strategy: Flat
- Support: 0.8443-57, 0.8350, 0.8236
- Resistance:0.8535, 0.8600, 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 in the 0.8443-57 area, 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 0.8600.
Prices are too close to support to justify entering short from a risk/reward perspective. On the other hand, the absence of a defined bullish reversal signal suggests entering long is premature. With that in mind, 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.