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- NZD/USD Technical Strategy: Flat
- Support: 0.8433, 0.8396-401, 0.8336
- Resistance:0.8472, 0.8494, 0.8524
The New Zealand Dollar is digesting losses against its US counterpart after breaking uptrend support set from late August 2013. Near-term support is at 0.8433, the 14.6%Fibonacci expansion. Breaking below this barrier on a daily closing basis exposes the 0.8396-0.8401 area marked by the June 4 low and the 23.6% level. Alternatively, a turn above trend line support-turn-resistance at 0.8472 clears the way for a challenge of the 23.6% Fib retracement at 0.8509.
The available trading range is too narrow to justify taking a short or a long position at current levels from a risk/reward perspective. We will remain flat for now, waiting for a more attractive opportunity to present itself.
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Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com